Bank Account Sync with an App — How It Works and Is It Safe
You want to connect your bank to a budgeting app but worry about security. Here's how it actually works — no jargon, with real regulations.
“Connect my bank account to some app? No chance.” I hear this regularly. And I get it — it sounds like handing someone the key to your safe. Except that syncing your bank through Open Banking doesn't work that way. You don't share your password with anyone. You don't grant access to transfers. You don't put your money at risk.
Bank account sync with an app is an EU-regulated process where your bank shares transaction data with a licensed application — with your explicit consent and in read-only mode. In the UK alone, over 15 million adults — one in three — already use Open Banking (OBIE, 2025). Open Banking payments grew 53% year-on-year. And yet, many people still hesitate to connect their account to a budgeting app. This article explains why that caution is understandable — but unfounded.
Key takeaways
- You never share your password with the app — you log in through your bank's official page
- The app has read-only access (AISP) — it cannot make transfers or change account settings
- Open Banking is EU regulation (PSD2) — banks are required to support it, supervised by national regulators
- According to EBA-ECB (2025), payment fraud in Europe is just 0.002% of total transaction value
- Martia uses GoCardless — a licensed provider regulated by the FCA and Latvian FKTK across 31 European countries
How does bank account sync with an app work?
Bank account sync is a process where an app — with your consent — fetches transaction and balance information from your bank account. This happens through an API provided by your bank, in compliance with the European PSD2 directive.
The process looks like this: you select your bank → you're redirected to your bank's official login page → you enter your credentials directly with your bank (not the app) → your bank asks if you consent to sharing data → you approve. From that point, transactions appear in the app automatically.
What can the app see — and what can't it?
An app with an AISP licence (Account Information Service Provider) can see: transaction history, account balances, dates, and amounts. It cannot see: your login credentials, password, PIN, and it cannot make transfers or change any account settings. Think of it as granting someone access to your bank statements — without the ability to touch your money.
What is an AISP?
An AISP (Account Information Service Provider) is a licensed entity that has the right — with the customer's consent — to read information from a bank account. PSD2 regulation distinguishes between AISP (data reading) and PISP (payment initiation). Budgeting apps like Martia use AISP — they have read-only access, with no ability to initiate any payments.
Open Banking in numbers
Is syncing your bank account with an app safe?
Syncing your bank account through Open Banking is safe because it relies on three mechanisms: EU regulation (PSD2), mandatory two-factor authentication (SCA), and licensing of providers by national financial authorities.
Let's be honest — the fear of connecting your bank to an app is understandable. You have money in your account and don't want a stranger accessing it. That's a healthy instinct. But Open Banking was designed precisely to make that fear groundless.
Three layers of Open Banking security
1. Regulation — PSD2 and national oversight. Every app using Open Banking must hold a licence (AISP or PISP) issued by a national financial regulator — the FCA in the UK, BaFin in Germany, AMF in France, and equivalents across Europe. Over 500 Third-Party Providers are approved to operate across the EU (Kontomatik, 2023).
2. Strong Customer Authentication (SCA). PSD2 requires two-factor authentication for every login. Your password alone isn't enough — you also need confirmation via your bank's mobile app or an SMS code. According to the EBA-ECB Joint Report (2025), SCA-verified transactions have significantly lower fraud rates. Card fraud is 17 times more frequent when the recipient is outside the EEA, where SCA isn't required.
3. Read-only access (AISP). A budgeting app cannot make transfers, change account settings, or even see your password. It sees transactions and balances. That's it.
Myth vs. reality
Myth: “Connecting your bank to an app is like giving someone your banking password — they could take your money.”
Reality: With Open Banking, you never share your password with the app — you log in through your bank's official page. An AISP-licensed app has read-only access to transactions, with no ability to initiate payments. According to Huntsman Security, there have been no documented data breaches specifically through PSD2-compliant Open Banking APIs.
Want to see what automatic sync changes in everyday budgeting? Read our guide to controlling your household budget.
Nervous about connecting your bank? See how it works
Martia uses GoCardless — a licensed provider regulated by the FCA and Latvian FKTK. Read-only access. Zero access to transfers. Zero passwords stored by the app.
What is Open Banking and why are banks required to support it?
Open Banking is a system regulated by European law where banks share transaction data with licensed applications — with the customer's explicit consent. This isn't optional for banks. It's a legal requirement under the PSD2 directive (Payment Services Directive 2), which came into effect in 2018.
Why did the EU introduce this? Because until 2018, your transaction data was locked inside one bank. Wanted to see spending across three accounts? You logged into three separate banking apps. PSD2 changes the rules: your financial data belongs to you, not to the bank. And you have the right to share it with whoever you choose.
Open Banking across Europe — regulation by country
Each European country has a national regulator overseeing Open Banking: the FCA in the UK, BaFin in Germany, AMF in France, DNB in the Netherlands, and others. The UK leads adoption with 15 million users and a dedicated Open Banking Implementation Entity (OBIE). Across Europe, 94% of licensed banks comply with PSD2 requirements (2025).
What's next — PSD3 and FIDA
The EU is working on successors to PSD2. PSD3 (expected 2026) will expand the scope of regulation, and FIDA (Financial Data Access) — expected 2027 — will open access not just to bank accounts but also to insurance, investments, and pensions. The direction is clear: more control for users, not less.
What is PSD2?
PSD2 (Payment Services Directive 2) is a European Union directive governing payment services. It requires banks to share transaction data with licensed applications (with the customer's consent) and mandates Strong Customer Authentication (SCA) for logins and payments. PSD2 is supervised by national financial authorities in each EU member state and the UK.
GoCardless and PSD2 — who is responsible for your data security?
Three parties are responsible for data security in Open Banking: your bank, the service provider (e.g. GoCardless), and the national financial regulator. Each has specific regulatory obligations — this isn't about goodwill, it's about law.
GoCardless — who are they?
GoCardless Ltd is a British fintech company authorised by the FCA (Financial Conduct Authority) under registration number 597190. In 2022, GoCardless acquired Nordigen — a Latvian Open Banking provider and the first AISP licensed by Latvia's FKTK. Today, as GoCardless Bank Account Data, they connect to over 2,300 banks across 31 European countries.
What data do you share — and what don't you?
You share: transaction history (dates, amounts, descriptions), account balances, basic account information (IBAN, currency).
You do not share: your banking password, PIN, credit card details, transfer access, or the ability to change any account settings. The app has no physical ability to perform operations on your account.
DORA — an additional layer of protection from 2025
Since January 2025, the EU's DORA (Digital Operational Resilience Act) imposes even stricter requirements on financial institutions regarding cybersecurity, incident reporting, and resilience testing. DORA supersedes the previous PSD2-based incident reporting framework.
Adam, założyciel Martia
From the founder
When I was choosing an Open Banking provider for Martia, I evaluated over a dozen options. GoCardless won not because it was cheapest — but because it holds dual regulatory licences (FCA + FKTK), connects to European banks via standardised APIs, and never requires users to share login credentials with anyone other than their bank. Security wasn't a compromise. It was a requirement.
How does Open Banking sync differ from sharing your banking password?
Bank account sync through Open Banking is a process where the app never sees your password — unlike older methods that required giving your login credentials to a third party. This is the fundamental difference and the primary reason Open Banking is safe.
| Feature | Old method (screen scraping) | Open Banking (PSD2) |
|---|---|---|
| Banking password | Shared with the app | Shared only with your bank |
| Transfer access | Theoretically possible | Impossible (AISP = read-only) |
| Regulation | None or minimal | PSD2, FCA/BaFin, DORA |
| Authentication | Password only | SCA — two-factor |
| Revoking access | Change your password | One click in your bank's settings |
The key difference: with the old model (screen scraping), you gave your login and password to a third-party company. The company logged in “as you” and scraped data. With Open Banking, that step doesn't exist — you log in yourself, through your bank's page, and the bank transfers data through a secure API. The app never sees your password.
Which European banks support sync through Open Banking?
Virtually all major European banks support Open Banking — it's a PSD2 requirement, not an option. GoCardless Bank Account Data (used by Martia) connects to over 2,300 banks across 31 countries. As of March 2026:
The list above is illustrative — GoCardless supports thousands of banks across Europe. If you have an account at a bank regulated in the EU or UK, chances are it's supported. For a comparison of apps that use this sync capability, see our comparison of household budget apps.
Your bank is on the list — connect in 2 minutes
N26, ING, Santander, HSBC, BNP Paribas, Revolut, Monzo, and thousands more — Martia connects to all major European banks. Automatically, through Open Banking, read-only.
How to connect your bank account to an app — step by step
Connecting your bank account to Martia through Open Banking takes about 2 minutes. The entire process happens on your bank's official website — Martia never sees your password.
1. Select your bank
In Martia, choose your bank from the list of supported institutions. If you have accounts at multiple banks, you can connect them all — one at a time. Each account is added separately.
2. Log in through your bank's official page
You're redirected to your bank's official login page. Enter your credentials directly with your bank — not Martia. Confirm your identity via SMS code or your bank's mobile app (SCA — two-factor authentication).
3. Approve read-only access to transactions
Your bank displays a consent screen — asking whether you agree to share transaction data with Martia. Approve it. From that moment, transactions sync automatically. You can revoke consent at any time — one click in your bank's settings.
That's it. No forms, no document scans, no contracts to sign. Three steps, two minutes, full financial picture. For more on putting that data to practical use, see our guide to planning monthly expenses.
Frequently asked questions
Is syncing your bank account with an app safe?
Yes. Syncing through Open Banking (PSD2) means the app receives read-only access to transactions — it cannot make transfers or change account settings. You log in through your bank's official interface and never share your password with the app. According to the EBA-ECB Joint Report (2025), payment fraud in the EEA accounts for just 0.002% of total transaction value.
Can the app see my banking password?
No. With Open Banking, you log in directly on your bank's website. The app never sees, stores, or has access to your password or login credentials. It receives only an authorisation token granting read access to transactions.
Can the app make transfers from my account?
No, if it operates under an AISP licence (Account Information Service Provider). AISP means read-only access — the app can see transactions and balances but cannot initiate any payments. Martia uses GoCardless, which operates as an AISP.
What is Open Banking and PSD2?
Open Banking is a system where banks share transaction data with licensed apps — with the customer's explicit consent. PSD2 (Payment Services Directive 2) is the EU directive that requires banks to provide this access and sets the security standards. It's supervised by national regulators like the FCA (UK), BaFin (Germany), and equivalents across Europe.
Which European banks support Open Banking?
Virtually all major European banks — it's a PSD2 requirement. This includes N26, ING, Santander, BNP Paribas, HSBC, Commerzbank, Rabobank, and thousands more. GoCardless Bank Account Data (used by Martia) connects to over 2,300 banks across 31 European countries.
How do I connect my bank account to Martia?
It takes about 2 minutes: open Martia, select your bank, log in through your bank's official page (credentials go to your bank, not Martia), approve read-only access to transactions. Sync starts automatically from that point.
Sources
- OBIE / SQ Magazine (2025), Open Banking Adoption Statistics, sqmagazine.co.uk
- EBA-ECB (2025), Joint Report on Payment Fraud, ecb.europa.eu
- GoCardless, Regulated Terms — FCA authorisation (reg. 597190), gocardless.com
- Huntsman Security, PSD2 Open Banking Security Incidents, huntsmansecurity.com
- ENISA (2024), Threat Landscape — Finance Sector, enisa.europa.eu
- Kontomatik (2023), Open Banking Statistics Across Europe, kontomatik.com
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