Ally explores fintech products using quantum computing with Microsoft

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+  Microsoft today announced that fintech firm Ally will join the former’s Azure Quantum program to explore how quantum computing can create opportunities in the financial sector. The two companies say that they’ll apply research on quantum-inspired algorithms to understand ways they can be tapped to solve complex optimization challenges.

“We have been able to benefit from the deep experience of the Microsoft Quantum research team, learn about the types of problems quantum can help solve within the financial services industry, and begin developing quantum computing skills using Microsoft’s quantum development kit,” Ally wrote in a blog post. “Through this relationship, we are gaining the insight and experience from Microsoft’s leading researchers. Leveraging Microsoft’s Azure capabilities, Ally has access to the software languages, APIs, and infrastructure to build quantum skills. This will open many exciting opportunities and empower us to explore the use of quantum computing technology across the landscape of financial services [applications].”


+  As for the problems Ally hopes to solve with quantum computing, they could include anything from knowing why a customer is likely to contact a call center to portfolio management and streamlining business processes, according to Microsoft. It’s Microsoft Quantum director Julie Love’s belief that future algorithms and quantum hardware might draw on Ally’s financial datasets to help professionals make decisions.

+  For example, Monte Carlo, a popular method for analyzing risk in finance, requires many simulations to achieve high confidence. That’s because Monte Carlo simulations account for uncertainty and randomness by constructing probability distributions over many possible outcomes as opposed to one. In finance, Monte Carlo methods are applied to portfolio evaluation, planning, risk evaluation, and derivatives pricing. Quantum algorithms might improve these computations since quantum computers can run multiple scenarios simultaneously and, through quantum interference, reduce the error in simulation.

Source:  Venture Beat.  Kyle L. Wiggers,  Ally explores fintech products using quantum computing with Microsoft…

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