Quantum Finance: harnessing quantum computing in the Finance sector

Quantum Finance: harnessing quantum computing in the Finance sector

The research collaboration between CDP, Intesa Sanpaolo and DATA Reply - now online - evaluates potential opportunities and risks associated with rapidly advancing technology

Cassa Depositi e Prestiti, in collaboration with Intesa Sanpaolo and DATA Reply, published a report on the financial implications of Quantum Computing, a technology rooted in Max Planck's "quantum" physics theory, expected to generate over 1.35 trillion USD in global impact by 2028.

The rapid and pervasive emergence of artificial intelligence, combined with the staggering amount of data generated daily alongside the incremental progression toward a physical barrier in reducing silicon components in processors, is propelling the research and development of quantum computing to revolutionise existing computing systems.

It is no coincidence that Quantum Computing has attracted major investments (35.5 billion USD globally with notable contributions from China, the U.S., Canada and the European Union) aimed at advancing new hardware components, sophisticated communication systems and cutting-edge sensors.

The research aims to provide industry professionals, particularly those at the forefront of adopting this innovative methodology, with insights into how harnessing quantum technologies might offer solutions for solving conventional computational issues in finance.

Undoubtedly, the financial sector, known for its extensive variety and intricate data management challenges, stands to gain more than other sectors from the computational capabilities promised by future quantum computers particularly when applied to tasks such as portfolio optimisation, market forecasting or pricing of options.

CDP's initiative seeks to provide insights into quantum algorithms capable of substantially reducing computational time compared to classical algorithms (known as "quantum advantage"), while also addressing the current market and research landscape and potential cybersecurity risks associated with these new systems.

The continuous research activities conducted over several years suggest an increasingly rapid evolution of quantum device capabilities. That is why it is necessary to focus attention on this area from the outset: to prevent us from trailing behind in sectors where multiple global players have already integrated it into their technological innovation strategies.