While AI is a popular topic in the fintech space, the conversation around quantum computing is growing. What will it achieve, and is the financial services industry prepared for its arrival?
During the panel session titled “How to Get Quantum-Ready?” at Money20/20 Europe in Amsterdam, Lina Beliunas, director of revenue at Zero Hash, engaged with Daragh Morrissey, AI director of WW Financial Services at Microsoft, on the potential of quantum computing in finance.
The discussion explored the current landscape of quantum computing, highlighting how tech giants like Microsoft are developing quantum services and software tools. Morrissey explained that Microsoft is creating software to simulate quantum computers and abstract qubit architectures, facilitating integration across various providers.
Addressing the hype surrounding quantum computing, Morrissey acknowledged the challenges of building qubits and their limited availability. However, he indicated that advancements could occur sooner than anticipated, citing the rapid innovation pace akin to the AI boom.
Morrissey compared quantum technology to tools like hammers and scalpels, emphasizing its applications in banking, such as risk modeling, fraud detection, and credit scoring. However, he noted that these applications are still primarily in the research phase, with many clients using GPUs to emulate quantum functions, referred to as “quantum-inspired research.” He emphasized the critical impact of quantum technology on encryption, warning that quantum computers could easily undermine current encryption methods, thus necessitating quantum-safe encryption for security.
Morrissey commented on the dual nature of quantum technology, stating, “The biggest value is also its biggest threat, particularly in security.”
Regarding the costs associated with quantum technology, he explained Microsoft’s goal to democratize access, making it available to all. He acknowledged the complexities and high costs of building quantum computers, particularly those that operate at extremely low temperatures. However, some providers are exploring silicon-based quantum processing units to reduce entry costs, and Microsoft aims to offer affordable solutions to help organizations start building applications early.
To prepare for a quantum future, Morrissey advised companies to transition to the cloud to ensure quantum-safe security and effectively deploy quantum use cases. He highlighted the need for quantum technology to identify and assess vulnerabilities in security systems.
In conclusion, Morrissey stressed the importance of global collaboration in tackling the challenges posed by quantum computing: “To achieve the necessary standards, Europe, America, and Asia must partner to address these issues. Open communication among countries is crucial.”