The Next Tech Frontier Is Here: Impact of Quantum Tech on Financial Services Today
The session on quantum computing at the Singapore FinTech Festival provided an insightful exploration of the technology's potential and challenges, especially in the financial sector.
Introduction
Session moderator, Steve Suarez, introduced quantum computing as a transformative technology, emphasising its distinctiveness from classical computing. The conversation then progressed into how quantum computing could revolutionise various fields.
Understanding Quantum Computing
Rajat Taneja from Visa explained that classical computers use bits in binary form (0s and 1s), whereas quantum computers use qubits, which can represent both 0 and 1 simultaneously. This capability leads to exponential computational power, allowing for unprecedented parallelism. However, quantum computing requires significant infrastructure, unlike portable classical devices.
Applications in Finance
Colin Bell of HSBC highlighted quantum computing’s capacity to solve complex problems efficiently, crucial for financial services. The technology can improve portfolio optimisation, risk modelling, and fraud detection by handling multiple variables without relying on approximate models. He also mentioned the threat posed by quantum computers to current cryptographic methods, prompting the industry to prepare for a post-quantum world.
Mary Ann Francis from the Emerging Payments Association stressed the importance of “quantum-safe” technologies, given the potential cybersecurity threats. Her focus is on using quantum to enhance fraud prevention, risk management, and treasury services in real-time payment systems. She also detailed collaborative efforts in the APAC region involving banks and fintechs to navigate quantum’s impacts.
Real-World Use Cases
Colin shared HSBC’s work on using quantum algorithms for fraud detection, which improves efficiency and reduces false positives or negatives. He also mentioned HSBC’s experiments with post-quantum cryptography in distributed ledger projects and quantum key distribution (QKD) for enhanced security. Mary Ann elaborated on initiatives to address customer concerns and ensure robust cyber defence strategies.
Future Potential and Security Concerns
Rajat from Visa highlighted quantum computing’s wider applications, such as drug discovery, climate modelling, and precision agriculture. However, he warned about the security risks it poses, as quantum computers could eventually break current encryption methods. Visa has long been researching post-quantum cryptography, contributing to global standard-setting efforts.
Colin acknowledged the ongoing challenges, such as error rates and the complexity of creating stable qubits. He emphasised that companies should not wait for quantum technology to mature but should start preparing and exploring its potential today. Marianne advocated for an ecosystem approach, suggesting that different departments work together to plan and allocate resources effectively.
Educational Initiatives
Steve concluded the session by stressing the importance of education in quantum computing. He mentioned new courses launched by CFTE and MIT to help industry professionals understand quantum computing and its strategic implications.
Speakers:
- Colin Bell, Chief Executive Officer, HSBC Bank plc & HSBC Europe
- Mary Ann Francis, Executive Consultant & Ambassador, Global Payments & Strategic Initiatives Advisory
- Rajat Taneja, President of Technology, Visa
Moderator:
- Steve Suarez, Founder & Chief Executive Officer, HorizonX