Blueprint for Building a Quantum Programme in Financial Services

 

 

Delivered at the Singapore FinTech Festival, this presentation by Dr. Marco Pistoia, Ph.D., Managing Director, Head of Global Technology Applied Research, J.P. Morgan, showcased the transformative potential of quantum computing in finance, focusing on optimisation, anomaly detection, and enhanced security through quantum cryptography.

 

Key Highlights

1. Quantum Computing Research at J.P. Morgan

  • Global Technology Applied Research Lab: Dedicated to emerging technologies like quantum computing, blockchain, IoT, and AR/VR.
  • Commitment to Transparency: Published in top-tier journals, with over 2,000 citations in four years to foster ecosystem growth.

 

2. Quantum Computing: A Game-Changer for Finance

  • Unique Capabilities:
    • Qubits: Enable superposition (0 and 1 simultaneously) for exponential computational power.
    • Entanglement: Correlates qubits to unlock unprecedented optimisation potential.
  • Key Achievements:
    • Scaling Advantage: Demonstrated quantum systems outperform classical solvers for complex problems, such as low autocorrelation binary sequences.
    • Quantum Supremacy Milestone: Enhanced Google’s 2019 quantum supremacy experiment with 100x improvement and 30,000x less energy consumption.

 

3. Quantum Use Cases in Finance

  •  Anomaly Detection in Payments:
    • Identifies sanctioned entities and fraud patterns in real-time with reduced false positives.
    • Quantum algorithms reduce complexity from linear to logarithmic, enabling faster processing of billion-scale datasets.
  • Fraud Detection in Credit Card Transactions:
    • Applies similar principles to flag suspicious activities efficiently.
  • Distributed Machine Learning:
    • Combines quantum communication with privacy-preserving machine learning to address data vulnerabilities.

 

4. Quantum Cryptography for Financial Security

  • The Threat of Shor’s Algorithm:
    • Public-key cryptography vulnerable to quantum attacks, potentially reducing decryption time from trillions of years to hours.
    • Immediate concern due to "Harvest Now, Decrypt Later" strategies by attackers.
  • J.P. Morgan’s Dual Approach:
    • Post-Quantum Cryptography: Algorithms standardised by NIST to resist quantum attacks.
    • Quantum Key Distribution (QKD):
      • Secure key transmission using qubits in superposition, safeguarded by the no-cloning theorem in quantum mechanics.
      • Combination of QKD at the network layer and post-quantum cryptography at the application layer ensures end-to-end security.

 

5. Global Leadership in Quantum Security

  • Singapore Collaboration:
    • Advanced research in quantum security, including a local team focused on QKD.
    • Integration of QKD and post-quantum cryptography to minimise vulnerabilities.
  • Recognition in the Scientific Community:
    • J.P. Morgan's QKD research, led by Charles Lim, published in Nature.
    • Cited by the Nobel Prize Committee in recognising breakthroughs in quantum entanglement.

 

Vision for the Future

Dr. Marco Pistoia envisions quantum computing as a cornerstone of financial innovation, delivering exponential computational power, robust security, and transformative operational efficiencies. By combining cutting-edge quantum research with real-world applications, the bank aims to lead the quantum revolution in finance.

 

Conclusion

Quantum computing and cryptography promise a secure and efficient future for finance. With its commitment to research, transparency, and collaboration, J.P. Morgan is at the forefront of this paradigm shift.

 

Watch Full Session

 

 

Speaker:

  • Dr. Marco Pistoia, Ph.D., Managing Director, Head of Global Technology Applied Research, J.P. Morgan
 
 

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