[patrakov]

> - Phone enclaves -> see above

Well... not really, from the viewpoint of a bank. Look, now the user can extract the key that the bank TOTP app carefully keeps, and transfer it to another (rooted) device, or use without a phone at all, meaning that this app is no longer a "something unclonable that you have" authentication factor. From a risk management and compliance perspective, that's a contract breach: the bank is legally obliged to store that secret securely, so that the user is guaranteed to complain if it could have been used by someone else.

[nly]

Two factor auth is often just used to shift blame anyway.