The Impact of Quantum Computing on Banking will be gigantic says Deltec Bank, Bahamas – Quantaneo, the Quantum Computing Source
However, even with that progression, there are still jobs that classical computers are not powerful enough to do. The answer looks set to come from quantum computing. In this post, we will look at what quantum computing is and how it could revolutionize a long-standing industry such as banking.
What is Quantum Computing?
Quantum computers are expected to be a new kind of technology that can solve complex problems well beyond the capabilities of traditional systems. If you take an everyday problem like climate change, the intricacies of solving it are incredibly complex. A standard computer does not have the power or ability to even get close to genuinely understanding everything that is going on. The main reason is the endless amounts of data that computers need to process to generate an accurate decision.
A quantum computer is often referred to as a supercomputer. It has highly advanced processing power that can take masses of variables into account, helping predict weather patterns and natural disasters in the case of climate change.
Brief Technical Summary
A typical computer stores information in what is known as bits. In quantum computing, these are known as qubits. Qubits have certain properties that mean a connected group of them can provide way more processing power than binary bits from classical computing. In short, where binary bits store 1s and 0s to handle a task, qubits can represent numerous possible combinations of these simultaneously.
Practical Example
An example of this could be if running a travel agency. Lets say three people need to move from one place to another, Jenny, Anna and Steve. For that purpose, there are two taxis and the problem you want to solve is who gets into which taxi. However, we know that Jenny and Anna are friends, Jenny and Steve are enemies and Anna and Steve are enemies.
The aim would be to maximize the number of friend pairs and minimize the enemy pairs sharing the same taxi. A classical computer would store each possible solution with bits one at a time before being able to calculate a potential solution. However, a quantum computer will use qubits to represent all the solutions at the same time. It will find the best solution in a few milliseconds as it piles everything into just 1 operation.
The difference here is a traditional computer performs more and more calculations every time the data scales up, whereas a quantum computer will only ever have to process one operation.
In the real-world, one industry that could heavily benefit from this technology and processing power is banking.
Quantum Computing in Banking
In an article from Banco Bilbao Vizcaya Argentaria (BBVA) from October 2019, it was suggested that this kind of quantum computing power might fundamentally change the face of banking in time.
Encryption of personal data is critical to banking, with RSA-2048 being used at the highest levels. For a classical computer to find the key to decrypt the algorithm would take 1,034 steps. To put that into context, a processor capable of a trillion operations per second would still take 317 billion years to resolve the problem. Realistically, that makes decryption impossible.
However, a quantum computer could solve the decryption in just 107 steps. If the computer were running at a million operations per second, this calculation would only take 10 seconds to complete. The potential of quantum computing in this context is quite amazing. That said, we are still a long way off having enough processing power to reach those heights, but experts are working on it.
Barclays
Researchers at Barclays Bank in collaboration with IBM have created a proof-of-concept quantum optimized application. The solution revolves around the transaction settlement process. A settlement works on a transaction-by-transaction basis where they are pushed into a queue and settled in batches. During a processing window, as many trades as possible from the queue are settled.
Trades are complex by nature according to Lee Braine, director of research and engineering at Barclays. Traders can tap into funds before the transaction has been cleared. They are settled if funding is available or if there is some sort of credit collateral facility.
In a quantum computing context, a small number of trades could, in theory, be done in your head. However, as you get up to 10 or 20 transactions, you might need to use a pen and paper. Any more than that and we start going into classical computing. However, as we get to hundreds of trades, the machines begin to experience limitations.
A bit like the travel agency example we gave earlier, a quantum computer could run masses of complex aspects of trading. Using a seven-bit qubit system, the team could identify certain features that were of sufficient complexity. The same calculations would need about 200 traditional computers.
JP Morgan
Using an IBM machine, researchers at JP Morgan have demonstrated that they could simulate the future value of a financial product. They are testing the use of quantum computers to speed up intensive pricing calculations which would take traditional machine hours to compute. As portfolios become larger, the algorithms have greater complexity and could get to a point where they are impossible to calculate.
The research by the team has shown that a commercial-grade quantum computer can run the same calculations in a matter of seconds.
Summary
According to Deltec Bank, the Bahamas Banks are successfully testing quantum computers to solve problems that were previously very resource-intensive or impossible to complete. Although the technology is still some years away from changing the way banks calculate financial models due to complex hardware requirements, it is important to start testing now.
IBM themselves have stated they are a while away from a perfect solution with big breakthroughs still required but the time will certainly come.
See the article here:
- D-Wave Stock Slips. Why Nvidias Quantum Computing Event Hurt the Shares. - Barron's - March 22nd, 2025 [March 22nd, 2025]
- Nvidia Is Going Big on Quantum Computing, and It Isnt Going It Alone - Barron's - March 22nd, 2025 [March 22nd, 2025]
- 6 Top Quantum Computing Stocks to Buy in 2025 - The Motley Fool - March 22nd, 2025 [March 22nd, 2025]
- Recommended Reading Evaluating the Performance of Quantum Process Units at Large Width and Depth - Quantum Computing Report - March 22nd, 2025 [March 22nd, 2025]
- When will quantum computing be available? It depends - TechTarget - March 22nd, 2025 [March 22nd, 2025]
- Quantum-computing stocks fall again as Jensen Huang and other CEOs temper expectations around the bleeding-edge tech: Not good enough yet for... - March 22nd, 2025 [March 22nd, 2025]
- Is quantum computing the future of tech and where to find investment opportunities By Investing.com - Investing.com - March 22nd, 2025 [March 22nd, 2025]
- Jensen Huang backpedals on remarks that sent quantum computing stocks spiraling - TechSpot - March 22nd, 2025 [March 22nd, 2025]
- D-Wave Introduces Quantum Blockchain Architecture, Featuring Enhanced Security and Efficiency over Classical Computing - Business Wire - March 22nd, 2025 [March 22nd, 2025]
- Nvidia CEO Jensen Huang says he was wrong about quantum computing. But he might be right - Quartz - March 22nd, 2025 [March 22nd, 2025]
- Nvidia will build accelerated quantum computing research center - VentureBeat - March 22nd, 2025 [March 22nd, 2025]
- Quantum Computing Stocks Jump Ahead Of Nvidia GTC Conference Next Week - Investor's Business Daily - March 18th, 2025 [March 18th, 2025]
- 5 wild things quantum computing could unlock now that Big Tech believes a breakthrough is within reach - Business Insider - March 18th, 2025 [March 18th, 2025]
- Want to Invest in Quantum Computing? 3 Stocks That Are Great Buys Right Now. - The Motley Fool - March 18th, 2025 [March 18th, 2025]
- How Quantum Computing And The Metaverse Will Transform Your Career - Forbes - March 18th, 2025 [March 18th, 2025]
- QUBT INVESTOR ALERT: Bronstein, Gewirtz and Grossman, LLC Announces that Quantum Computing Inc. Shareholders Have Opportunity to Lead Class Action... - March 18th, 2025 [March 18th, 2025]
- Cloudflare is already selling security tools for the quantum computing era - Quartz - March 18th, 2025 [March 18th, 2025]
- Norma and Neowiz Partner to Explore Quantum Computing and AI for Game Development - The Quantum Insider - March 18th, 2025 [March 18th, 2025]
- China to spend $55 billion on R&D in 2025 Semiconductor, AI and quantum computing fields to benefit - Tom's Hardware - March 18th, 2025 [March 18th, 2025]
- D-Wave Quantum leads massive rally in quantum computing stocks as its revenue outlook goes parabolic - Sherwood News - March 18th, 2025 [March 18th, 2025]
- Arqit leads quantum computing stocks higher ahead of Nvidia's GTC event - Seeking Alpha - March 18th, 2025 [March 18th, 2025]
- Quantum Computing (QUBT) to Release Earnings on Thursday - MarketBeat - March 18th, 2025 [March 18th, 2025]
- Nvidia's Jensen Huang to unveil cutting-edge AI and quantum computing processors - Firstpost - March 18th, 2025 [March 18th, 2025]
- Quantum Computing Just Took Another Giant Leap--What It Means for Investors - PR Newswire - March 18th, 2025 [March 18th, 2025]
- 4 Quantum Computing Stocks On Watch Today As GTC 2025 Kicks Off - Barchart - March 18th, 2025 [March 18th, 2025]
- The Gross Law Firm Reminds Quantum Computing Inc. Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of April 28, 2025 -... - March 18th, 2025 [March 18th, 2025]
- Quantum Computing Market Size to Grow Worth USD 888.5 Million at - openPR - March 18th, 2025 [March 18th, 2025]
- China to spend $55 billion on R&D in 2025 Semiconductor, AI and quantum computing fields to benefit - MSN - March 18th, 2025 [March 18th, 2025]
- Nvidia GTC And Quantum Computing Drivers Of The Stock Market, Trump Put Fails But May Not Be Dead - Benzinga - March 18th, 2025 [March 18th, 2025]
- Google, Microsoft, and others are racing to crack open quantum computing. Here's how their breakthroughs stack up. - Business Insider - March 9th, 2025 [March 9th, 2025]
- Could Investing in This Quantum Computing Stock Be Like Buying Nvidia Prior to the Dawn of the Artificial Intelligence (AI) Revolution? - Yahoo... - March 9th, 2025 [March 9th, 2025]
- Inside The Quantum Computing Crash Triggered By Nvidia CEO And What His Upcoming 'Quantum Day' May Bring - Investor's Business Daily - March 9th, 2025 [March 9th, 2025]
- Rigetti Earnings Reveal the Risks and Rewards of Quantum Computing - Barron's - March 9th, 2025 [March 9th, 2025]
- 'Nanodot' control could fine-tune light for sharper displays and quantum computing - Phys.org - March 9th, 2025 [March 9th, 2025]
- 3 Quantum Computing Stocks to Buy on the Dip - 24/7 Wall St. - March 9th, 2025 [March 9th, 2025]
- How quantum computing is shaping the future of tech - Yahoo Finance - March 9th, 2025 [March 9th, 2025]
- AIST Strengthens Quantum Collaboration with ORCA Computing and Universal Quantum - Quantum Computing Report - March 9th, 2025 [March 9th, 2025]
- Microsofts Quantum Computing Breakthrough, Explained - The Dispatch - March 5th, 2025 [March 5th, 2025]
- Quantum Computing Startup Says Its Already Making Millions of Light-Powered Chips - Singularity Hub - March 5th, 2025 [March 5th, 2025]
- Quantum computing is creating the future heres how - USC Dornsife College of Letters, Arts and Sciences - March 5th, 2025 [March 5th, 2025]
- Why We Dont Have Real Quantum Computing Yet - Forbes - March 5th, 2025 [March 5th, 2025]
- QunaSys Joins 19.95M ($20.91M USD) EU Project to Advance Sustainable Battery Innovation with Quantum Computing - Quantum Computing Report - March 5th, 2025 [March 5th, 2025]
- Alice & Bob to Host Fault-Tolerant Quantum Computing Workshop with CEA - HPCwire - March 5th, 2025 [March 5th, 2025]
- Rigetti partners with Quanta to boost superconducting quantum computing development - DatacenterDynamics - March 5th, 2025 [March 5th, 2025]
- Quantum Computing Inc. Class Action Alert: Wolf Haldenstein Adler Freeman & Herz LLP reminds investors that a securities class action lawsuit has... - March 5th, 2025 [March 5th, 2025]
- Quantum computing startup says its already making millions of light-powered chips - StartupNews.fyi - March 5th, 2025 [March 5th, 2025]
- A quantum computing startup says it is already making millions of light-powered chips - Phys.org - March 3rd, 2025 [March 3rd, 2025]
- Superconducting Quantum Computing Beyond 100 Qubits - Physics - March 3rd, 2025 [March 3rd, 2025]
- How IBM CEO Arvind Krishna Is Thinking About AI and Quantum Computing - TIME - March 3rd, 2025 [March 3rd, 2025]
- Webinar | 27 March 2025 | Quantum computing: The future of finance are you ready for Q-Day? - FinTech Futures - March 3rd, 2025 [March 3rd, 2025]
- 3 Quantum Computing Stocks To Buy As Microsoft Announces Major Breakthrough - Barchart - March 3rd, 2025 [March 3rd, 2025]
- WT 360: Inside the governments quantum computing push - Washington Technology - March 3rd, 2025 [March 3rd, 2025]
- INVESTOR ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Quantum Computing Inc. and Certain Officers - QUBT - PR Newswire - March 3rd, 2025 [March 3rd, 2025]
- Amazon unveils Ocelot, its first quantum computing chip - The Guardian - March 3rd, 2025 [March 3rd, 2025]
- Industry Weighs in on AWS Quantum Computing Chip - IoT World Today - March 3rd, 2025 [March 3rd, 2025]
- Startup PsiQuantum says it is making millions of quantum computing chips - Yahoo - March 1st, 2025 [March 1st, 2025]
- IonQs Earnings Hit the Stock. Quantum Computing Rivals D-Wave and Rigetti Are Down Too. - Barron's - March 1st, 2025 [March 1st, 2025]
- Interested in Quantum Computing Investing? Here Are 4 Fantastic Picks to Maximize Your Odds of Picking a Winner - Nasdaq - March 1st, 2025 [March 1st, 2025]
- Want to Invest in Quantum Computing? 2 Stocks That Are Great Buys Right Now - The Motley Fool - March 1st, 2025 [March 1st, 2025]
- 3 Reasons Why Microsoft Is the New King of Quantum Computing With Majorana 1 - The Motley Fool - March 1st, 2025 [March 1st, 2025]
- QUBT INVESTOR ALERT: Bronstein, Gewirtz & Grossman LLC Announces that Quantum Computing Inc. Investors with Substantial Losses Have Opportunity to... - March 1st, 2025 [March 1st, 2025]
- Quantum Computing (NASDAQ:QUBT) Trading 0.4% Higher - Here's What Happened - MarketBeat - March 1st, 2025 [March 1st, 2025]
- Why Quantum Computing Stock IonQ Dropped Today - The Motley Fool - March 1st, 2025 [March 1st, 2025]
- Prediction: These 2 Quantum Computing Stocks Will Be the Biggest AI Winners of 2025 - Yahoo Finance - February 20th, 2025 [February 20th, 2025]
- 4 AI Stocks to Watch in the Quantum Computing Revolution - The Motley Fool - February 20th, 2025 [February 20th, 2025]
- Quantum Watch: 3 Quantum Computing Startups Set to Disrupt the Industry - TipRanks - February 20th, 2025 [February 20th, 2025]
- D-Wave, IonQ and Quantum Computing Stocks Pop: What's Driving the Momentum? - Benzinga - February 20th, 2025 [February 20th, 2025]
- Microsoft quantum breakthrough promises to usher in the next era of computing in 'years, not decades' - GeekWire - February 20th, 2025 [February 20th, 2025]
- Microsoft claims practical quantum computing could be ready in 'years rather than decades' with new computer chip - Fortune - February 20th, 2025 [February 20th, 2025]
- Microsoft unveils chip it says could bring quantum computing within years - The Guardian - February 20th, 2025 [February 20th, 2025]
- Microsoft created a new type of matter for its quantum computing chip - Quartz - February 20th, 2025 [February 20th, 2025]
- Kipu Quantum and IBM Introduce New Optimization Function in Qiskit Functions Catalog - Quantum Computing Report - February 20th, 2025 [February 20th, 2025]
- Microsoft reveals its first quantum computing chip, the Majorana 1 - MSN - February 20th, 2025 [February 20th, 2025]
- How Microsoft is rewriting the rules of reality with quantum computing - Interesting Engineering - February 20th, 2025 [February 20th, 2025]
- Microsoft Makes Quantum Computing Breakthrough With New Chip - The New Stack - February 20th, 2025 [February 20th, 2025]
- Should the Government Fund a Manhattan Project for Quantum Computing? - Built In - February 20th, 2025 [February 20th, 2025]
- This Quantum Computing Stock Just Announced a Key New Sales Strategy and Its First Customer - Barchart - February 20th, 2025 [February 20th, 2025]
- HPE launches slew of Xeon-based Proliant servers which claim to be impervious to quantum computing threats - TechRadar - February 20th, 2025 [February 20th, 2025]
- Quantum Computing (NASDAQ:QUBT) Trading Down 4% - Here's What Happened - MarketBeat - February 20th, 2025 [February 20th, 2025]
- 4 AI Stocks to Watch in the Quantum Computing Revolution - MSN - February 20th, 2025 [February 20th, 2025]