While AI is garnering all the attention when it comes to innovation and funding, major financial institutions are developing quantum computing in the background to prepare for the future.
And JPMorgan is the front runner when it comes to developing quantum computing in financial services, according to a March 20 report from think tank Evident AI.
The rankings, according to the report:
- First, JPMorgan;
- Tied for second, HSBC and Italian bank Intesa Sanpaolo; and
- Tied for fourth, BBVA, Standard Chartered and Wells Fargo.
Evident AI analyzed hiring, research, patents, investments and communications related to quantum computing to create the rankings, according to the report.
Quantum computing-related hiring surged 10% since August 2024, and 15 major banks mentioned the tech in their annual reports, the report stated.
Quantum computing in the wild
While quantum computing is not ready for mainstream use, banks are investing in the technology because it unlocks new capabilities “to run different kinds of algorithms, with much more complexity and speed,” Alexandra Mousavizadeh, chief executive of Evident AI, told Bank Automation News.
Uses of quantum computing that banks are exploring include:
- Increasing security of sensitive data;
- Reducing fraud; and
- Running market simulations for derivative trading and insurance.
Quantum computing can be used “everywhere that software is deployed in a bank’s processes,” Mousavizadeh said.
Many banks have reported exploring quantum computing, including:
- Citizens Bank and BNP, for defensive cryptography to improve security;
- Truist, for advanced market analysis; and
- HSBC, to fight cyber threats.
Is quantum the hardware of future AI?
With AI uses growing quickly and requiring more computing power to run larger models, quantum computing can easily fill any gaps, Jessica Gonzalez, director of lending strategies at online loan provider Informed IQ, previously told BAN.
“There is a lot of interesting research in this area happening now, particularly on the use of advanced GPUs [graphics processing units] as decoders for quantum computers to make them less error-prone,” Mousavizadeh said. “Quantum and artificial intelligence can definitely form powerful synergies, and the models may not necessarily have the same architecture as current LLMs either.”
Cost of quantum
Deployment of quantum computing might come with a heftier price tag than the deployment of AI, Mousavizadeh said.
“There is no single component — the equivalent of an advanced GPU — for running quantum machines,” she said. “This means that the quantum machines that banks use will be diverse, some will be very costly if they are engineered within the bank itself and costs will vary depending on how useful qubits [the basic unit of information in quantum computing] are read within the quantum machine.”
Many banks will save money by outsourcing the operation of quantum machines, Mousavizadeh said.
IBM and Google are developing quantum computers to be used by the financial services industry, the companies have stated.
In December 2024, Google launched its quantum machine, Willow, that can run a complex simulation in less than five minutes. That same simulation would take one of today’s fastest supercomputers 10 septillion (that is, 10 to the 25th power) years — a number that vastly exceeds the age of the universe.
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