Earlier quoted context omitted.
In the EU these hardware keyfobs are now forbidden for banking because they are considered less secure than app-based 2FA. The reason is that an app-based confirmation gives you the opportunity to review the transaction you are confirming; they can display "Are you sure you want to send 19.99 € to website.com with payment description 'subscription'?".
> In the EU these hardware keyfobs are now forbidden for banking [...] an app-based confirmation gives you the opportunity to review the transaction you are confirming; I'm confused, that seems like it confuses two independent aspects: 1. Whether the TOTP code comes from a fob-device versus a phone-device. 2. Whether some interactive interface you're using gives you a chance to see/confirm what you're about to author…
The threat model is: malicious actor posing as the bank website, but legitimate keyfob or legitimate app. With the keyfob, the website intercepts a valid password and a valid 2FA code; with the app, nothing happens because it doesn't receive push data from the true bank.
I hope it is more clear now!