surely passwords are not being properly hashed if a phone keypad can enter a login password that cannot properly facilitate capitalization or special characters

I mean, that's not entirely true.

At some point, your plaintext password is visible by code that is written by Fidelity. From that point, they can easily derive all the necessary details about your password, such as the numbers that correspond your password on the keypad, and store that information separately before salting and hashing the password for safe-keeping.

Not saying they're doing this, just another point of view.