Unleashing the quantum power in banking

While quantum computing remains in its early stages, its potential to reshape the financial landscape is undeniable. Institutions that act now, by investing in research, forming strategic partnerships, and deploying pilot use cases, will be at the forefront of this transformation, writes Phillip Wright, COO at HSBC Vietnam.

In an age where technological breakthroughs are unfolding at an unprecedented pace, the world stands on the brink of a true revolution.

Consider Firesat, an AI tool developed by Google that can detect wildfires as small as a classroom in size, updating its high-resolution imagery every 20 minutes. Or in the healthcare sector, where AI-powered systems, from robotic surgery to advanced diagnostic tools, are set to radically change how medical care is delivered. The realm of AI is no longer a futuristic concept, it is reshaping the fabric of industries today.

As these technologies gain momentum, quantum computing, once relegated to science fiction, is becoming a tangible reality. Particularly for the financial sector, quantum technology promises to be one of the first to make a lasting impact, fundamentally altering banking operations on a global scale.

Understanding quantum computing

Quantum computing leverages the power of qubits, which, unlike traditional bits that can represent either 0 or 1, can represent both simultaneously due to the principle of superposition. This ability enables quantum computers to process vast amounts of data in parallel, solving problems exponentially faster than classical systems.

Another key principle, entanglement, allows qubits to be interconnected in a way that the state of one directly influences the state of another, regardless of distance. This interconnectedness opens the door to more complex and innovative computational models, enabling unprecedented problem-solving capabilities.

How quantum transforms banking sector

The application of quantum computing in finance is multifaceted. According to McKinsey, it has the potential to unlock up to $700 billion in value for the global banking industry by 2035.

One of the immediate impacts will be in risk assessment and decision-making. Banks rely on sophisticated models to evaluate credit, investments, and…