All of these types of "hey, give us your password to this other system" are just training users to get phished. IMO the worst offender in this is Plaid, which has created a service where millions of people are giving their banking credentials so some random startup can mine your transaction data. And people think FB has privacy implications...
Plaid might be my least favorite company ever. It's such a privacy nightmare and they do not even tell you basic information about what you are sharing (or how to revoke sharing rights) going through their typical flow on some random fintech app. If you look at their website, you could be giving away just the bank and routing number, or potentially your entire bank transaction history, balance, identity information,…
Except that like all no-longer-a-startup companies who can make your life a living nightmare if they are not spot-on perfect with their security, Plaid have slapped a mandatory, binding arbitration clause in their user agreement.
Thus, if they do drop the ball in some catastrophic way, your ability to recover anything beyond a firm handshake and maybe an "oops, our bad" on the way to an "Our Incredible Journey" blog post is on the same level of probability as my winning a gold medal in curling at the Olympics: it statistically could happen, but very likely won't.