The banking regulation is usually introduced across whole EU and this includes new recommendation to phase out 2FA via SMS.

Not all countries have caught up yet, but you can expect that to change within a few years.

Which doesn't preclude hardware keypads, which British banks have been issuing for at least 15 years now.

They may have, but here in central EU they stopped to save costs and now the only option on many banks is having a smartphone.

That's not really the point. The 2FA I use isn't via SMS, and never was.