This is the thing that bothers me the most about this. It is as if even the HN crowd is taking it as given that malware is this big problem for banking on Android but in reality there seems to be very little evidence to back this up. I regularly read local (Finnish) news stories about scams and they always seem to be about purely social engineering via whatsapp or the scammer calling their number and convincing the victim they are a banking official or police etc.

That's why I'm inclined to believe Google is just using safety as an excuse to further leverage their monopoly.