The world is waking up to the potential of quantum computing. Both it’s potential for good, as well as its potential for bad. Many companies have already made the Quantum Leap including IBM, Alphabet’s Google, Amazon, Microsoft, and several others you will be less familiar with. As it stands, the cost of a quantum computing is still significantly higher than it will be in the future. With new technologies appearing regularly, are financial institutions taking advantage of quantum’s promise?
David Deutsch is considered to be the father of quantum computing. In 2007 he spoke about how one of the most important application of quantum computing in the future is likely to be a computer simulation of quantum systems.
Deutsch also shared at the time how the ‘watershed’ moment with quantum computer technology will be when a quantum computer exceeds about 100 to 200 qubits.
Quantum computers today are already exceeding 1,000 qubits. With today being World Quantum Day, we investigate the current state of readiness for quantum computing amongst financial institutions.
What is World Quantum Day?
Today’s World Quantum Day is a decentralized and bottom-up initiative. It includes scientists, engineers, educators, communicators, entrepreneurs, technologists, historians, philosophers, artists, museologists, producers, etc… to develop activities and celebrate the World Quantum Day around the World.
It is also a moment for us at DisruptionBanking to reflect on our stories on the topic of Quantum Computing. But, more importantly, it is a chance for us to bring our readers some hot news from the quantum space too.
Quantum Computing over the Years
DisruptionBanking’s first stories about quantum computing were in December 2019 and June 2020. In our first story, we accredited the essential elements of a quantum computer to Paul Benioff. In truth there have been many pioneers in the field of quantum computing, just like success has many fathers. Benioff laid the theoretical groundwork, while Deutsch envisioned practical quantum algorithms.
At the time, in 2019, Google had just released a 54-qubit quantum computer. JP Morgan was working with IBM to use a quantum machine learning algorithm, whilst Barclays and HSBC were already looking at quantum too.
A few months later in the summer of 2020, we spoke to Johann Polecsak of QAN Platform about quantum resistant encryption. Fast forward to September 2024 and HSBC pilots quantum-safe technology. HSBC used post-quantum cryptography (PQC) to move digital assets safely across distributed ledgers. Something that QAN Platform had predicted as a use case.
Much of the innovation surrounding quantum computing is happening in Asia. More specifically in Singapore where the Monetary Authority of Singapore together with the Banque de France completed a post-quantum cryptography experiment in November last year.
Financial institutions can benefit from quantum computing in many more ways. Portfolio optimization could be helped through quantum algorithms. Fraud detection could be enhanced through quantum machine learning. Simulating market scenarios in turn could help improve risk management. These are just some of the use cases financial institutions need to consider today.
Quantum computing is hitting the mainstream. How are banks preparing for it?
Which Banks are Prepared for Quantum Computing?
We reached out to Steve Suarez, Founder and CEO at HorizonX Consulting, to find out more. HorizonX Consulting has been leading quantum adoption amongst financial services. The company offers Quantum computing for Corporate Executives and Government Leaders as a course together with MIT.
Steve believes that quantum computing is a long-term game, there is not quick return on investment. Steve looks at two sides of the coin. There is quantum vigilance which is looking at the outside market. He points at initiatives like Google’s Willow, the performance of which is astonishing.
The other side is quantum visioning. With this concept, Steve challenges business leaders to imagine that quantum computing is here today and now. What would they do about it? He advises to look for small successes right now, because as quantum computers get better you will start to see the benefits of it.
In February this year, the Quantum Insider and HorizonX Consulting launched the Quantum Index, the first tool tracking enterprise adoption of quantum technology.
“The insights provided by this index will empower organizations to make informed decisions on their quantum strategies and stay ahead of the curve. At HorizonX Consulting, we don’t just educate boards and executives on the possibilities of quantum – we help craft strategic roadmaps and guide the execution of these plans to ensure organizations fully leverage the potential of quantum technologies,” Steve explained.
As of today the index shows JP Morgan at the top of the rankings, with HSBC coming in second. Each financial institution is assessed on multiple indicators drawn from proprietary data from the Quantum Insider and other publicly available data points.
Other banks mentioned in the Top 5 include Goldman Sachs, Wells Fargo, and Citi. With the extra focus on Quantum Computing in 2025 interest is rising. It’s not only the UN’s International Year of Quantum but today is also World Quantum Day. Is this the right time to start working on your Quantum Vision? If you haven’t already.
See Also:
Will 2025 be the year of women in quantum computing ? | Disruption Banking
How IBM is ensuring that the World is Quantum Safe | Disruption Banking
