Service initiation
An open finance service in which a licensed provider initiates a transaction on a customer's account or product, with consent.
Service initiation is the open finance service of initiating, by electronic means, a transaction relating to a customer's account or product, as the Central Bank of the UAE's regulation defines it. It goes beyond payment initiation to actions such as placements, withdrawals, redemptions and orders. The regulation requires consent for each transaction, or at the outset for a recurring transaction.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Open financeCustomer-permissioned sharing of financial data, and initiation of services, by licensed third parties through secure interfaces.Consent (open finance)The customer's explicit, informed permission for a provider to access specified data or initiate a transaction.Strong customer authenticationVerifying a customer with at least two independent factors, such as something they know, have or are.Profit-sharing investment account (PSIA)An account whose funds the bank invests, usually as mudarib, with returns based on actual results rather than a promised rate.