Banking Sector Discovering Quantum Computing’s Benefits
BBVA Uncovers The Promise Of Quantum Computing For Banking And Financial Services
+ “We are trying to understand the potential impact of quantum computing over the next 5 years,” says Carlos Kuchkovsky, global head of research and patents at BBVA. Last month, BBVA announced initial results from their recent exploration of quantum computing’s advantage over traditional computer methods. Kuchkovsky’s team looked at complex financial problems with many dimensions or variables that require computational calculations that sometimes take days to complete. In the case of investment portfolio optimization, for example, they found that the use of quantum and quantum-inspired algorithms could represent a significant speed-up compared to traditional techniques when there are more than 100 variables.
BBVA, “the digital bank for the 21st century”—established in 1857 and today the second largest bank in Spain—is at the forefront of investigating the benefits of quantum computing.
+ After hiring researchers with expertise in quantum computing, BBVA identified fifteen challenges “that could be solved better with quantum computing, faster and with greater accuracy,” says Kuchkovsky. The results released last month were for six of these challenges, serving as proofs-of-concept for, first and foremost, the development of quantum algorithms and also for their application in the following five financial services tasks: Static and dynamic portfolio optimization, credit scoring process optimization, currency arbitrage optimization, and derivative valuations and adjustments.
+ Quantum computing is evolving rapidly and Kuchkovsky predicts that in five years, companies around the world will enjoy full access to quantum computing as a service and will benefit from the application of quantum algorithms, also provided as a service. Specifically, he thinks we will see the successful application of quantum computing to machine learning (e.g., improving fraud detection in the banking sector). With the growing interest in quantum computing, Kuchkovsky believes that in five years there will be a sufficient supply of quantum computing talent to satisfy the demand for quantum computing expertise.
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