I use legacy banks for some stuff (typically things that require underwriting), and neo-banks EMI's for things where legacy banks just don't move fast enough (cross boarder transactions, shared accounts, automations).
you assume this exists / can exist
(for a given set of reasonable requirements which aren't yours)
but various "practices" and "regulations" for software security push banks into the direction of such nonsense, so if a major reasons this is happening is the government asking them to fix it is very reasonable
similar in other context where that argument is often used you have problems like monopolies, collusive agreements or various source pushing companies into acting collectively user hostile weather it's laws or other reasons
the government fixing such things by changing laws/regulations is pretty much the only things which can work in many cases
this doesn't mean they have to tell companies exactly what to do, instead they (should) find out what pushes things in bad directions and then "counter balance it" in some form or way