Financial services to spend USD 450 mln on quantum computing by 2026

Friday 16 July 2021 10:30 CET | News

Revenues from quantum computers and related services sold to the banks and financial institutions will total USD 450 million by 2026, according to IQT Research

The forecasts provided in this report are of quantum hardware, software, and services expenditure by the financial sector from 2021 and 2026. The quantum technology analyst firm conducted a research and launched a report on quantum tech, suggesting also that the above value is growing to just over USD 2 billion by 2030.

The report is based on both primary and secondary research. The primary research included interviews with leading financial institutions as well as on the ongoing interviews carried out by IQT Research throughout the quantum technology sector and end-user base. The secondary research consists of reviews of both technical and business articles related to quantum computing as well as the websites of commercial firms and other organizations involved.

Many of the largest banks and other financial institutions already have substantial quantum computing teams in place.

IQT Research believes that financial institutions now have the capital to support significant investment in quantum computing by the banks and other related organisations in the next few years.  It claims that there are – or soon will be -- abundant pioneering applications for quantum computing in financial services. Still, IQT Research says that some interviewees for this report were ‘frustrated’ that their companies were not focusing sufficiently on the opportunities that they saw in quantum computers. Others thought their organisations were too distracted by the hype associated with quantum computing.

Areas impacted by quantum computing will include trade settlements, risk modelling, accelerating AI/ML, goals-based investment, portfolio construction, tax loss harvesting, fraud detection, analytics-driven CRM, dynamic portfolio management, credit scoring, currency arbitrage, and derivative pricing.

For each of these areas, the report looks at how quantum computing can add efficiencies and profitability to financial institutions. IQT Research believes that quantum computing has the potential to disrupt financial services to the same degree that occurred with digital computing and high frequency trading in the past.

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Keywords: quantum computing, financial services, banks, research
Categories: Banking & Fintech
Countries: World
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Banking & Fintech

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