It's really similar to using a web based banking system, where you have user ID, password, and nowdays 2FA too
I think the banking system is different from a wallet seed where you have the control of your seed. The bank will have your account information and you hold the PIN for it. If the PIN is lost or hacked then you will loose your funds.
I know that this is a bit different because in a bank you can go into the first branch and can ask for a new password or new login ID or whatever (after you have identified yourself of course), and this is not possible with bitcoin seeds, but somehow similar...
As you said, if the account is hacked, the bank can block your account and can create a new account and password. And your funds are still safe, if it is blocked before stealing your funds. Whereas in case of wallet seed, if you loose the seed then you lost it completely. No way you can recover your funds.