I ran into this. I'm trying to set up an account on wise.com. The way they want me to set up my bank for direct deposit is to type my banks password into their site! I asked support if there was any other way to do this (for example the regular institution, branch, account numbers) and they said no. But they reassured me that despite me typing the password into their site that they don't have access to it! (Ok, it was actually a Plaid iframe, but still not my bank. Clickjacking would also be very easy to implement and there is no way for the average user to understand this.)

Then banks wonder why their customers get phished.