What effect will Quantum have on the Financial Services industry?

By Michael Watkins

Posted on

Quantum computing – once thought of as something that is purely theoretical – is quickly becoming a reality, transforming industries across the board. The Financial Services (FS) industry, underpinned by a reliance on data-driven decision making, stands to benefit greatly from this ‘quantum leap’ in technology.

In this blog, we will look at how quantum computing is poised to take over Financial Services, unlocking new possibilities for organizations and customers alike.

Enhanced Computer Power

Quantum offers unparalleled computing power that will outperform classical computers at solving complex problems. Financial institutions should leverage this added power in order to optimize risk assessment activities, portfolio management, fraud detection, as well as a host of other computer-dependent everyday tasks.

Cryptographic Barriers

The security of financial transactions is only going to grow in importance as a greater portion of the world moves online. Once again, this is an area in which traditional methods of maintaining these cryptographic barriers will be outflanked by the comprehensive nature of quantum computing.

The added benefit of quantum in this area is something known as quantum key distribution (QKD), which enables secure communication and is founded on the principles of quantum mechanics. This means that it is practically impossible to intercept or decipher these encrypted communications.

Fraud Detection

A constant battle already for financial institutions on a national and global scale, fraud detection is an area where quantum is almost tailor made to face this battle head on. Enabling institutions with the tools to process large volumes of transactional data while, at the same time, identifying and analyzing patterns within the data, is a huge advantage to anyone looking to find fraudulent activity.

In this blog, we’ve looked at quantum computing. In particular, we’ve identified areas within the Financial Services industry where quantum provides a sizeable opportunity for progress. As this area of technology continues to mature, competitive advantage is up for grabs for any FS institution that embraces quantum as soon as possible.

The quantum revolution has definitely started, and those organizations which make the most of this time now will pave the way for a future of boundless innovation and success.

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By Michael Watkins

Michael is Wazoku's Product and Brand Marketing lead. Away from the office, he's our resident film buff, so if you want some recommendations for a night in front of Netflix or a trip to your local cinema, get in touch with him!