OCBC takes a first-mover role in bringing quantum technology to banking

QUANTUM technology is emerging as one of the most closely watched innovations in the global technology landscape, promising to transform industries from finance to logistics and cybersecurity.

Singapore’s national push to develop quantum expertise – including multi-million-dollar investments in research, infrastructure, and talent development – reflects the country’s belief that the technology is poised to have a profound impact on the world.

Financial institutions, in particular, are starting to explore how quantum computing and quantum-safe solutions could revolutionise operations, offering faster problem-solving, enhanced security, and new capabilities that were previously unattainable with conventional computing.

Against this backdrop, OCBC is positioning itself as the “first mover” of quantum technology adoption among Singapore banks. It is exploring applications and research that could transform its operations in cybersecurity, financial modelling, and fraud detection, says Peter Koh, the head of group technology architecture at OCBC.

The bank began developing its capabilities in 2021 as part of a broader roadmap for emerging technologies, with pilot projects, staff training, and academic collaborations laying the groundwork for wider adoption, says Koh, who is responsible for identifying and driving the adoption of emerging technologies at OCBC.

Koh says quantum technology has the potential to solve complex problems more quickly than traditional computing.

Quantum computers achieve this by using quantum bits, which can exist in multiple states simultaneously, unlike conventional computers that rely on binary digits in switches that are either zero or one.

Quantum technology has two primary uses: quantum computing and quantum-safe solutions.

Quantum computing, which can optimise logistical processes or solve cryptographic problems faster than traditional computers, is still about five to 10 years away from becoming mainstream, says Koh.

However, quantum-safe solutions include both quantum key distribution, which detects unauthorised access between communication networks, and post-quantum cryptography, which protects classical computing systems from quantum attacks. Both technologies can already be used today to enhance security.

Laying the groundwork

OCBC has identified several key areas to explore for quantum technology adoption, beginning with cybersecurity and expanding to financial modelling.

It is pursuing these through partnerships with private entities for commercial pilots, as well as research collaborations with Institutes of Higher Learning (IHLs).

OCBC has begun deploying quantum technology within its operations, primarily through quantum key distribution in cybersecurity. It is the first financial institution in Singapore to trial Singtel’s Quantum-Safe Network, which secures communication channels with quantum key distribution. The technology enables immediate alerts if unauthorised users try to tap the network link between OCBC’s headquarters and the bank’s data centre.

OCBC is also one of the banks that completed a proof-of-concept sandbox with the Monetary Authority of Singapore to evaluate the use of quantum key distribution to securely transfer financial data.

Another area OCBC is exploring is the use of quantum technology to enhance financial modelling, particularly in pricing derivative products. Koh notes that calculating derivative prices involves numerous complex formulas that fluctuate with changing market conditions. “We are hoping that through the use of quantum computers, we could better optimise some pricing for our customers,” says Koh, who adds that efforts in this area might take up to five years to bear fruit.

In terms of research partnerships, OCBC is collaborating with Singapore’s three major universities – the National University of Singapore (NUS), Nanyang Technological University (NTU), and Singapore Management University (SMU) – for a year to advance quantum research. These partnerships, formalised in July 2025, focus on three key areas: derivative pricing, data security, and fraud detection.

Koh says IHLs make “ideal partners” for OCBC, as they are often at the forefront of research in emerging technologies. With NUS’ Centre for Quantum Technologies, OCBC is exploring the application of quantum computing to complex risk management models, such as Monte Carlo simulations, which are widely used in the financial sector to model a range of potential outcomes and their probabilities.

At SMU, the bank is working on improving fraud detection by analysing millions of patterns and using quantum technology to compress these patterns into formulas that make it easier to identify suspicious activity.

Meanwhile, NTU is helping OCBC with research on post-quantum cryptography, aimed at protecting data from future quantum threats. This involves designing encryption methods based on complex mathematical problems that remain secure against quantum attacks.

The findings from these collaborations will be published in technology-focused research papers and journals, allowing the financial industry to assess the potential of quantum technology and accelerating broader adoption.

Koh says: “This is part of our contribution back to the community. We hope to bring some of these capabilities to commercial use.” Koh also notes that the bank plans to expand partnerships with private sector companies and regional universities in the future.

Building internal capability is also central to OCBC’s strategy. The bank follows a two-pronged approach: cultivating a core group of quantum experts and fostering broader awareness across the workforce.

For the first prong, selected staff work directly with partners such as Singtel and SPTel to get hands-on experience. They could be in roles related to quantum computing, such as technology, business and cybersecurity. These staff are also sent for courses to improve their expertise in quantum technology.

“By getting our people hands-on experience, they can adopt any development in quantum a lot quicker in future,” says Koh.

Training began in May 2024, and courses include a combination of online classes, in-person workshops by OCBC’s in-house experts and NUS, as well as online courses.

Staff complete around 16 hours of self-directed classes to build foundational knowledge in quantum computing, as an introduction.

About 50 employees have reached an intermediate proficiency level in quantum computing as of the end of 2024. Koh says that OCBC aims to train up more than 100 employees by 2026.

The second prong focuses on raising broad awareness about quantum technology among OCBC’s workforce. To that end, OCBC has held appreciation courses via virtual talks for around 700 staff to understand the basics of quantum technology and its potential applications. These talks help employees prepare for a future where quantum technology is more widely adopted within the bank.

Says Koh: “We just want to make sure as many employees know about quantum technology, and other new technology, as much as possible… So we have such talks to bring our employees up to speed in this emerging technology.” The bank plans for 1,500 employees to participate in these sessions by 2030.

Gearing up for the next phase

Overall, Koh describes OCBC’s approach to adopting emerging technologies as a “structured” one, premised on “starting small” with pilot projects before scaling its adoption within the bank.

OCBC’s roadmap outlines a gradual approach to adopting quantum technology. Over the past year, the bank has focused on commercial pilot projects with partners. In the next two years, it plans to expand the use of quantum key distribution to secure its communication networks, and implement post-quantum cryptography to safeguard its data against future quantum attacks.

Two to three years down the road, OCBC intends to explore quantum-assisted artificial intelligence (AI) and machine learning, leveraging the technology’s ability to tackle complex problems more efficiently.

“If we could harness the power of quantum to solve some AI models, we can develop those models a lot quicker and a lot more powerful as well,” says Koh.

Long term, quantum technology is expected to strengthen customer information security and risk management in OCBC. This could result in better protection against fraud and more accurate pricing of financial products, says Koh.

“If we can find a way to optimise the pricing models for investors, I think that could radically transform the way we serve our customers,” Koh says. He estimates that the full impact for customers may take at least five years to materialise.

The bank’s roadmap, combined with national support and structured training programmes, positions OCBC to navigate the emerging quantum landscape confidently.