The belief that quantum computing is futuristic and will mature years into the future is a myth. Market developments and activities on quantum computing in the last couple of years have proved that. It will mature at an accelerated pace, faster than how classical computing evolved. Now, therefore, is the best time for enterprises to brace up and start investing in quantum computers. Firms, which are unable to embrace this new paradigm, will be left light years behind.

In this viewpoint, we introduce quantum computing, trace its history, and explore the future possibilities from a financial services lens. We analyze ways quantum computers will impact the financial services industry, the quantum computing investment trends in BFSI, and list down a five-step approach for financial services firms to be quantum-ready.

Content

• The principles of superposition and entanglement aid parallel processing in quantum computers, which make it far more superior in terms of processing power as compared to classical computers
• Quantum computing has the potential to break even the most powerful security encryption of today
• The quantum computing maturity curve will be traversed at an accelerated pace as opposed to what happened for classical computers. We expect a 2000 qubit quantum computer by 2025
• Enterprise’s exploration of quantum computer use cases will really take off starting 2020-2021
• Beyond 2022, we will see quantum computers being integrated with other cutting-edge technology of the day (such as AI and blockchain) to unravel amazing use cases in consumer experience, cybersecurity, etc.
• In financial services, quantum computing will be used in solving optimization problems, high frequency trading, asset valuation, portfolio analysis, and fraud detection
• Big banks and insurance firms, the likes of Goldman Sachs, JP Morgan, CBA, Barclays, RBS, Allianz have already started investing in quantum computing technology
• Quantum computing has the potential to break even the most powerful security encryption of today
• Investing in quantum computers will start with building quantum computing algorithms that can enhance processing efficiencies of classical computers
• Quantum computing has the potential to break even the most powerful security encryption of today
• To gain a competitive advantage today, BFS firms must start exploring investments in QC. This can start with forming a task force focused on QC, developing market intelligence, building a talent model, and developing QC algorithms. Leveraging the QC ecosystem will be a key component of their success
• Quantum computing has the potential to break even the most powerful security encryption of today

Membership(s)

Banking & Financial Services (BFS) - IT Services (ITS)

Insurance - IT Services (ITS)