PSD2 (Payment Services Directive 2) is the European directive regulating third-party access to your banking information and payment initiation on your behalf. It is the engine behind “open banking” in Europe.
In practice, it is what lets apps like Fintonic, Mooney or BBVA Money read your movements automatically: with your authorisation, the bank grants them API access through a licensed aggregator.
Knowing what PSD2 is matters when picking a tool. An app that asks for your banking credentials uses PSD2; an app that does not connect to your bank, like Sumant, sits outside this framework and requires no aggregator authorisation.