But what is the alternative?

Many of these systems are added to digital wallets due to legal requirements or fraudulent cases. For example, one case of fraud that I’m aware of happened in Chile, where citizens were able to open bank accounts digitally with just their ID. But since there is no good biometric information, many criminals took the IDs of homeless people to open accounts and move money around.

Sadly, these shitting things happen, then companies use these services to avoid the liability, and then these services abuse the information they have.

People don’t have much choice unless their representatives in government do something; it’s not about apathy: you can stop using one bank app, but not all of them otherwise you’ll be out of the financial system.

I recall at an old place of work, the security office having a poster on the wall that said something to the effect of "if your facial biometrics get compromised, you must change your face".

Silly as they were trying to be, the concept still holds -

Facial biometrics can and do get compromised too. Your example of IDs taken from the homeless - what the heck prevents organized criminals from taking pictures or recordings of their faces too?

Already there's malware out there stealing facial recognition data from infected devices (ESET reported on this nearly two years ago). Unlike changeable passwords, once your facial recognition data is compromised then that's it. Scammers can now impersonate you on top of having defeated this additional layer of fraud prevention.