HSBC explores quantum computing in banking

HSBC has partnered up with quantum computing firm Quantiniuum for a series of projects that explore the tech field in banking.

The firms will work together on projects focussing specifically on cybersecurity, fraud detection and natural language processing.

According to Quantiniuum, in the first part of the multi-stage collaboration, it will demonstrate the use of quantum computing-hardened cryptographic keys – to encrypt data – combining them with post-quantum cryptographic algorithms to mitigate current and future cyber threats for the banking firm.

“This effort to strengthen resiliency against advanced cyber threats is increasingly critical as the transition point between the capabilities of classical and quantum computers continues to approach,” the company said.

In a second part, HSBC and Quantinuum will research and explore the potential benefits of quantum machine learning (QML) and quantum natural language processing (QNLP) for HSBC’s business.

Fraud detection is a key focus for the banking sector, and Quantiniumm said it will work with HSBC to examine advanced QML techniques that are enhanced by quibit routing and circuit optimisation offered by the software firm’s architecture-independent software development platform, TKET.

The partnership will also look at QNLP, which is a new form of language-based AI that uses an explainable model, rather than the “black box” methods of traditional classical large-language models.

QNLP will be based on training quantum states and processes that encode word meanings. This approach may enable tasks such as question answering or text similarity, which could be valuable in regulated markets dealing with customer data.

Philip Intallura, global head of Quantum Technologies at HSBC, said: “we are excited to embark on this partnership with Quantinuum and explore the further applications of Quantum technology in the Financial Services sector.

“Our collaboration provides us a great opportunity to access cutting-edge quantum hardware and take our use cases to a truly transformational level. We are looking forward to seeing the results of our joint work and bring long-term value to the bank.”

Elsewhere, experts predict that we have a decade to prepare for the security risks that quantum computing presents, but the message from IBM, Vodafone and a new ‘quantum safe’ telco taskforce is that the industry needs to start preparing now.