I'd imagine fraud checks, regulation, monitoring, fee collection etc

Almost all of those checks tend to happen after the fact and lead to transactions getting rolled back, rather than being checked in advance.

(Whether that's a desirable approach is a reasonable question, but that's already a thing that happens today. The only thing that needs checking in advance is "is there enough money".)

"Get an approval to buy a home or refinance your mortgage in minutes."

https://rocket.quickenloans.com/

If they can do it for buying a house ...

If Bitcoin can do it in 10 minutes globally, we can do it faster in a centralized system.

Edit: ... Not to mention many other developed nations' banking systems.

Edit: Not sure about the downvotes, but really- please don't pretend sending money instantly within one country is rocket science. The reason we're in this mess is mostly banks wanting to hang onto float, and legacy. Both our neighbors to the north and south have much speedier internal banking systems than we do, as do countless other countries.

Try to get anything out of a Bitcoin exchange in 10 minutes.

To fiat that'll take a while, but moving it around the space cash world is often very quick, on GDAX anyways.

I do it for a living.

How do you query the card balance and transfer the funds? Do you actually get cash out of the card, or do you have to resell it as a store credit to someone else?

Long story, and it very much depends on the brand. Re: cashing out, we do both transfers and resale, depending on the user risk profile.

Can you give an example of a fraud check that needs to take an hour?

Everyone has to make money on that money being transferred. Middle men.