Your bank misled you. Sorry.
“After your card is approved, your bank, your bank’s authorized service provider, or your card issuer creates a device-specific Device Account Number, encrypts it, and sends it along with other data (such as the key used to generate dynamic security codes that are unique to each transaction) to Apple. The Device Account Number can’t be decrypted by Apple but is stored in the Secure Element — an industry-standard, certified chip designed to store your payment information safely — on your device.
Unlike with usual credit or debit card numbers, the card issuer can prevent its use on a magnetic stripe card, over the phone, or on websites. The Device Account Number in the Secure Element is isolated from iOS, watchOS, macOS, and visionOS, is never stored on Apple servers, and is never backed up to iCloud.”
Apple Pay security and privacy overview - Apple Support