Quantum computing shifts the boundaries of computing with the ability to solve complex problems that classical computers can’t do. It opens up newer opportunities and capabilities triggering major innovations and disruptions in Financial Services. Some of the traditional products, services, and methods will be redundant paving ways to newer business models, products, and services.
Experts predict that we will see the initial application of quantum computing in the next 3 ~ 5 years, while Quantum Computers with full potential are at least 10+ years away. The following are some of the likely initial use cases in financial services:
- Advanced optimizations of portfolios using advanced modeling and simulations
- Faster processing of transactions, trades, and other processes (e.g. faster and efficient settlements at clearinghouses)
- Next level of innovations and advances in AI with quantum machine learning
- A significant shift in encryption methods as the current encryption algorithms/cryptography will be breached once quantum technologies get into bad actors