When you think of NextGenPSD2, the upgraded version of Europe’s open banking rule that lets apps securely access your financial data. Also known as PSD3, it’s not just a tweak—it’s a full rewrite of how banks share your money info with third parties. Unlike the original PSD2, which mostly opened up account access, NextGenPSD2 forces banks to let apps do way more: pull transaction history, initiate payments, even link your investment accounts—all with tighter security and clearer consent rules.
It’s not just about banks anymore. Open finance, the broader system that includes loans, insurance, and crypto data alongside bank accounts is now the real target. NextGenPSD2 makes it possible for apps to ask for your loan balances, retirement savings, or crypto holdings—not just your checking account. That means a budgeting app could see your whole financial picture, not just your spending. And financial data sharing, the core mechanic behind all of this is no longer optional for banks in the EU. They have to build the pipes, or face fines.
Why does this matter to you? Because the apps you use—like Revolut, Chime, or even your tax software—are already building on this. NextGenPSD2 means faster, safer connections. No more screen scraping. No more uploading bank statements. Just tap ‘allow’ and your data flows directly. It also means more competition: new fintechs can now build tools that work across banks, not just one. And if you’re in the U.S., don’t think this is just a European thing. The CFPB’s proposed rules, and even Apple’s Cash app integrations, are moving in the same direction. NextGenPSD2 is the blueprint.
You’ll find real examples of how this plays out: from virtual cards that auto-update spending limits using live data, to neobanks that sync your crypto balances with your budget tracker. There are posts on embedded finance, cross-chain bridges, and CBDCs—all connected by the same shift: your money data is no longer locked in one place. It’s flowing. And you’re the one in control. The posts below show you exactly how to use it.
NextGenPSD2 and FAPI are the technical foundations of Open Banking in Europe. NextGenPSD2 defines how banks share data, while FAPI locks it down with military-grade security. Together, they power budgeting apps, payments, and the future of Open Finance.
