JPMorgan has been identified as the leading institution in addressing the challenges and opportunities presented by advancements in quantum computing, according to research conducted by the benchmarking platform Evident.
The findings indicate that nearly 80% of 50 major banks monitored by Evident are actively engaging with quantum technology. The potential value generated by quantum computing applications in the financial sector could reach an astonishing $622 billion by 2035, as projected by McKinsey.
Evident assessed the quantum initiatives of each bank by evaluating their talent pool, hiring trends, patents, investments, and public outreach. JPMorgan Chase (JPMC) stands out significantly, accounting for two-thirds of all quantum-related job postings in the surveyed banks and having published more than half of all quantum-focused research papers. JPMC is already deriving benefits from quantum-inspired algorithms for portfolio optimization and cybersecurity measures.
European banks are also making notable strides, with seven out of the fifteen most active institutions in the field originating from this region. Noteworthy examples include HSBC, which is implementing quantum key distribution (QKD) in foreign exchange trading and tokenized gold for enhanced cybersecurity, as well as Intesa Sanpaolo, which is investigating quantum technologies for applications in credit scoring, fraud detection, and pricing of derivatives.
“Unlike AI, which permeates various facets of banking, quantum computing is expected to revolutionize specific applications. The transformational effects in areas such as portfolio optimization, credit scoring, and fraud detection will far surpass current computing capabilities,” states Alexandra Mousavizadeh, co-founder and co-CEO of Evident. “The changes brought about will not just be incremental; they will be groundbreaking.”
The report reveals that since August, the number of professionals specializing in quantum computing within the banking sector has grown by 10%, and affiliated researchers have published hundreds of quantum papers, collectively cited over 3,000 times.
“Though full-scale implementation of quantum computing is still years away, banks are proactively preparing to secure a competitive advantage at the convergence of AI and quantum technologies at this phase. Institutions that do not adapt may encounter significant security threats and miss out on crucial opportunities as quantum technology evolves,” Mousavizadeh concludes.