In end effect, the banks treat a non-rootable device as suitable as a "something you have" factor, but will not treat a rootable device as that.
Oh, it’s fsflover, the poster with the Librem idée fixe. Haven’t noticed you here in couple of years. Your comment elsewhere here about GrapheneOS not requiring much less effort to daily drive is way off. GrapheneOS runs banking apps and, in countries that legally enforce use of certain apps for ID or payment, those apps, too.
It's nice to know that I'm somewhat famous. I never suggested that running banking apps on GNU/Linux phones was as easy as on Android forks (however reportedly it is be possible for some banks). I meant other daily tasks of course.
My bank does not offer Western Union transfers, for example, because there's been too much fraud. And does not accept root-platform devices as 2FA "something you have" factors.
Liberty or consumer protection? Your choice, really.