Quantum computing: banking’s next revolution
The technology can perform calculations at speeds much faster than traditional computing, which pushes the limits of science and engineering
IN A rapidly evolving landscape of technology, few advancements hold as much promise as quantum computing, which is set to disrupt and revolutionise the way computers are used today. In an industry where seconds matter and precision reigns supreme, quantum computing has a lot of potential to transform banking from the ground up.
No longer a thing of science fiction, quantum computing can perform calculations at speeds much faster than traditional computing, which pushes the limits of science and engineering. The financial sector stands to benefit from this paradigm shift, such as through revolutionising predictive modelling, the optimisation of portfolio management and cybersecurity to better safeguard against imminent future quantum attacks.
The breakthrough for quantum computing seems to bring about two key shifts in our modern world: the introduction of quantum networks as the new guardians of our digital assets and ensuring digital privacy and security; and the explosion of algorithmic power which opens the door to bountiful opportunities.
As one quip goes: if you’re not moving faster, you’re falling behind.
Cybersecurity in the quantum age: fail to prepare, prepare to fail
But, as with any disruptive force, there’s a catch. The power from quantum computers does not just accelerate progress – it also threatens it. Our current encryption methods and systems, which forms the backbone of the modern cybersecurity world, could possibly be defeated by the force of quantum decryption. If banks don’t act now, we might as well leave the vault door wide open.
This means that banks must proactively invest in quantum-security solutions that protect our data and passwords against future quantum threats.
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Currently, the primary methods of making data quantum-safe are post-quantum cryptography and quantum key distribution (QKD). The former takes a software approach and refers to techniques designed to be computationally challenging for quantum computers to crack.
Meanwhile, QKD is hardware-focused and uses quantum mechanics principles to establish secure channels. Implementing QKD and other advanced encryption methods will ensure the continued security of banking clients’ information.
Quantum threats are no longer theoretical – they’re at our doorstep. Earlier in May 2024, the Chinese Journal of Computers documented a quantum breakthrough, successfully breaking RSA encryption even before full-scale quantum machines have hit the market. If this doesn’t sound the alarm, what will?
At OCBC, we are partnering with leading technology companies and engaging in research to develop holistic quantum experiences and resilience in the banking industry.
Initiatives such as Singapore’s S$300 million National Quantum Strategy are not just national priorities – they are strategies put in place to better prepare and secure our future, positioning Singapore as a leading hub for developing and deploying quantum technology in the next five years.
Building a quantum-ready workforce: It starts with us
The National Quantum Strategy focuses on four strategic thrusts:: enhancing scientific excellence in quantum research; strengthening engineering capabilities; developing a robust talent pipeline; and fostering innovation and enterprise partnerships.
In line with the strategic thrusts, OCBC recognises that it is critical to map out the next steps – and true innovation is impossible without the right people. Our strategy begins with investing in a quantum-ready workforce. To start tapping and extracting the full value of quantum computing, we must uplift our staff’s competencies with the requisite skillsets, not just to understand, but to master this emerging field.
We are building a future where our people don’t just work alongside quantum technologies – they lead with them. From workshops on quantum algorithms to hands-on use case training, we need to prepare our teams for the quantum-driven future of finance.
Our workforce must adapt to the rapidly changing environment. This requires a sustained approach towards educating employees about quantum technologies, its benefits, risks and industry-specific applications. As a start, we provide training to all employees to gain awareness and knowledge on the basic notions of quantum computing. Use-case workshops are offered to those who want to deep-dive into complex quantum algorithms and applications. Risk frameworks such as policies, processes and standards must also be uplifted for quantum technology implementation in the near future.
What the future holds: opportunities and unknowns
Quantum computing is rewriting the future of banking, but it is not just about faster computations or strengthening our cybersecurity. It is about reshaping the very core of financial services.
The potential of personalised banking solutions – where complex algorithms predict client needs before they arise – and tailored financial products delivered with higher accuracy are all part of quantum computing’s promise. Imagine predictive models that could forecast market shifts with near-perfect precision, or new financial instruments that we have not even dreamed up yet. The possibilities are staggering.
As we continue to wrap our brains around quantum technologies and how these will affect the industry, it is key to ask ourselves this question: Will quantum technologies open the door to ethical dilemmas we aren’t ready for? Could new financial risks emerge, ones we haven’t even begun to consider? The answer to both is likely “yes”.
But one thing is certain: The quantum era is near. The banks that prepare now will be the ones defining the future of finance – not reacting to it.
Proof of concepts and quantum research and development are not luxuries; they’re necessities. When you see a paradigm shift coming, you don’t wait for it to arrive – you build the bridge first.
The writer is head of group operations and technology, OCBC
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