Derayah owns 20% of D360 Bank, weighs retail banking services: CEO

Derayah CEO Mohammed AlShammasi

Derayah Financial Co. owns nearly 20% of D360 Bank’s capital, which provides direct digital services to retail and corporate clients, CEO Mohammed AlShammasi told Argaam on the sidelines of the Saudi Capital Market Forum. 

Derayah launched wealth management and securities trading activities and seeks to expand its business portfolio to offer retail banking services. The new business activity is still under study and will be revealed after obtaining the necessary regulatory approvals, said AlShammasi. 

The Saudi market traders will be more enthusiastic over the coming period, while moving from the index futures to the single-stock futures trading and then the option contracts. AlShammasi pointed out that such a transition is essential to develop the financial market and the necessary relevant infrastructure to enter the derivatives market and avoid any problems.  

Derayah is highly committed to supporting the plans of the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul) to develop the derivatives market in line with the international standards based on the vision of the Financial Sector Development Program, AlShammasi added.

In February, the Saudi Cabinet granted its approval for the Minister of Finance, Mohammed Al-Jadaan, to issue a license for the local digital bank - D360 Bank (under establishment) – pursuant to Article No. 3 of the Banking Control Law.

D360 Bank will be established with a SAR 1.65 billion capital through a consortium of individual and corporate investors, with the Public Investment Fund (PIF) as one of the key investors. The digital bank will be led by Derayah Financial Co.