The Global Tribune

Deltec Bank, Bahamas – “Quantum Computing will be Bringing Meaningful Impact in Banking Sector

 Breaking News
  • No posts were found

Deltec Bank, Bahamas – “Quantum Computing will be Bringing Meaningful Impact in Banking Sector

March 05
20:46 2020
Deltec Bank, Bahamas - “Quantum Computing will be Bringing Meaningful Impact in Banking Sector

Deltec Bank & Trust
How? Quantum computing is an extension from the quantum theory principles that develop computer technology to use quantum mechanics to perform efficient operations of computer tasks smaller and faster compared to a classical computer.

There is no doubt that banks are the biggest target when it comes to cybercrime. Banks are always under threat in some way and are always looked to create robust measures to avoid natural disasters from cybercriminals. Therefore, it is no coincidence as to why quantum computing is something that bankers have always had an interest in. The interest has now moved to a point where it is transforming the banking industry.

How? Quantum computing is an extension from the quantum theory principles that develop computer technology to use quantum mechanics to perform efficient operations of computer tasks smaller and faster compared to a classical computer. To make it simpler to understand, a quantum computer uses qubits to store information, which is an even smaller size break compared to bits, something that is usually used to store and encode information on a classical computer. A qubit can represent multiple things and can represent all numbers between 0 and 255, whereas bits can only be represented with one number between 0 and 255. With bits, only one combination can be used. Qubits offer more than one combination. The benefit of this is that quantum computers can make complex tasks easy and offers exceptional computing power to process those complex tasks. That is the sole reason quantum computing has risen in popularity over recent years. Because a qubit can use any state scale, the advantage for businesses is that it can store a vast amount of information consuming less energy than a classic computer.

How Quantum Computing Impacts The Banking Industry?

Banks are always evolving their defense strategy to be protected from widespread cyber-attacks. Articles have stated that quantum computing may fundamentally change the course of banking. Because banking has expanded accessibility through a variety of devices, defense systems need to evolve to ensure that users are protected when using banking with the latest technological devices.

Quantum computing has been taken advantage of by some of the world’s biggest bankers such as Barclays, JP Morgan, and Goldman Sachs. Here is a breakdown of why. One of the benefits of quantum computing can deliver is the speed of financial transactions. There are many opportunities that banking can grasp, such as improvements in risk assessment and trading. Quantum computing also has robust encryption capabilities that reduce the exposure to personal information of banking customers. Where a processor can triple the number of transactions, the number of steps it would take to encrypt these transactions significantly decreases, meaning decryption is next to impossible.

Barclays has already put the use of quantum computing to good effect, through efficient ways to simplify the transaction settlement process and even improving their encryption algorithms. JPMorgan is already exploring the idea of identifying how quantum computing can streamline trading strategy, asset pricing, and risk analysis. Although the wheels are only in motion, the identification of quantum computing to benefit JPMorgan means that the higher computing power enables fewer steps to be taken to resolve outcomes. This may also use it for pricing calculations where it takes many hours to complete with a traditional machine. Algorithms are more capable in countering ever-increasing portfolios which allows for the capacity to use resource-intensive technologies such as quantum computing to better streamline banking strategy.

According to Deltec Bank, Bahamas, “Right now, the technology is only being flirted as an opportunity for big banking companies and whilst it is not on the horizon today, the identification and feasibility of it within the banking and financial models are now beginning.” From a security perspective, it is being seen as a solution to transform how data is protected, making it next to impossible to become vulnerable to security threats. Quantum Computing is expected to transform the banking industry in ways that could not be first imagined. 

To sum up, Quantum Computing has only emerged as a new phenomenon that breaks down large processed tasks into smaller, efficient and faster tasks. Quantum Computing is now being pursued implementation in the world’s biggest banks to streamline operations and to make banking much more efficient for the consumer.

Disclaimer:  The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.

About Deltec Bank

Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.

Media Contact
Company Name: Deltec International Group
Contact Person: Media Manager
Email: Send Email
Phone: 242 302 4100
Country: Bahamas
Website: https://www.deltecbank.com/