Deltec Bank, Bahamas says the Impact of Quantum Computing in Banking will be huge

January 23 14:23 2020
Deltec Bank, Bahamas says the Impact of Quantum Computing in Banking will be huge

Deltec Bank, Bahamas
Deltec Bank, “Quantum Computing can help institutions speed up their transactional activities while making sense of assets that typically seem incongruent.”

Technologies based on quantum theory are coming to the financial sector. It is not an “if,” but a “when” for banks to begin using this option to evolve current business practices. 

Companies like JPMorgan Chase and Barclays have over two years of experience working with IBM’s quantum computing technology. The goal of this work is to optimize portfolios for investors, but several additional benefits could come into the industry as banks learn more about it. 

Benefits of Quantum Computing in Banking

Quantum computing stayed in the world of academia until recent years when technology developers opened trial opportunities. The banking sector was one of the first to start experimenting with what might be possible.

Their efforts have led to the development of four positive outcomes that can occur because of the faster processing power that quantum computing offers.

1. Big Data Analytics

The high-powered processing capabilities of this technology make it possible for banks to optimize their big data. According to Deltec Bank, “Quantum Computing can help institutions speed up their transactional activities while making sense of assets that typically seem incongruent.”

2. Portfolio Analysis

Quantum computing permits high-frequency trading activities because it can appraise assets and analyze portfolios to determine individual needs. The creation of algorithms built on the full capabilities of this technology can mine more information to find new pathways to analysis and implementation.

3. Customer Service Improvements

This technology gives banks more access to artificial intelligence and machine learning opportunities. The data collected by institutions can improve customer service by focusing on consumer engagement, risk analysis, and product development. There will be more information available to develop customized financial products that meet individual needs while staying connected to core utilities.

4. Improved Security

The results of quantum computing in banking will create the next generation of encryption and safeguarding efforts to protect data. Robust measures that include encrypted individual identification keys and instant detection of anomalies can work to remove fraudulent transactions.

Privately Funded Research is Changing the Banking Industry

Although some firms are working with IBM and other major tech developers to bring quantum computing to the banking sector, it is private money that funds most of the innovations.

An example of this effort comes from Rigetti Computing. This company offers a product called Forest™, which is a downloadable SDK that is useful in the writing and testing of programs using quantum technologies.

1QB Information Technologies in Canada has an SDK that offers the necessary tools to develop and test applications on quantum computers.

How the world approaches banking and finance could be very different in the future because of quantum computing. This technology might not solve every problem the industry faces today, but it can certainly put a significant dent in those issues.

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management

Media Contact
Company Name: Deltec International Group
Contact Person: Media Manager
Email: Send Email
Phone: 242 302 4100
Country: Bahamas
Website: https://www.deltecbank.com/

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