Quantum Computing in Finance: A Strategic Roadmap for Investors and Banks

Dylan Herman, Cody Googin, Xiaoyuan Liu +5 more

Paul M. Darbyshire

Every DAY, trillions of dollars are traded on the world's financial markets. The bulk of these transactions are carried out by traders working in banks, who stake investors' money on financial "instruments" such as the FTSE-100 share index or the exchange rate between two currencies. However, as investors have demanded greater potential returns on their investments, this basic trading activity has become increasingly more sophisticated.

Orson Mengara

Arit Kumar Bishwas, Sen, Mousumi

As quantum computing continues to advance, its ability to compromise widely used cryptographic systems projects a significant challenge to modern cybersecurity. This paper outlines a strategic roadmap for industries to anticipate and mitigate the risks posed by quantum attacks. Our study explores the development of a quantum-resistant cryptographic solutioning framework for the industry, offering a practical and strategic approach to mitigating quantum attacks. We, here, propose a novel strategic framework, coined name STL-QCRYPTO, outlines tailored, industry-specific methodologies to implement quantum-safe security systems, ensuring long-term protection against the disruptive potential of quantum computing. The following fourteen high-risk sectors: Financial Services, Banking, Healthcare, Critical Infrastructure, Government & Defence, E-commerce, Energy & Utilities, Automotive & Transportation, Cloud Computing & Data Storage, Insurance, Internet & Telecommunications, Blockchain Applications, Metaverse Applications, and Multiagent AI Systems - are critically assessed for their vulnerability to quantum threats. The evaluation emphasizes practical approaches for the deployment of quantum-safe security systems to safeguard these industries against emerging quantum-enabled cyber risks. Additionally, the paper addresses the technical, operational, and regulatory hurdles associated with adopting quantum-resistant technologies. By presenting a structured timeline and actionable recommendations, this roadmap with proposed framework prepares industries with the essential strategy to safeguard their potential security threats in the quantum computing era.

Orson Mengara

Nitesh Behare, Bhagyashri Sahebrao Patil, C. S. Yadav +1 more

This chapter introduces the revolutionary potential of quantum computing in finance, referencing its promise to revolutionize risk management, portfolio optimization, market forecasting, and data protection. It describes key quantum algorithms such as Grover's and Shor's, and technologies such as quantum annealing and quantum machine learning, while illustrating how the advances dramatically decrease computational complexity and improve decision-making efficiency. The research also includes the limitations of classical financial models and describes how quantum approaches bridge these limitations via superior stochastic modelling, real-time rebalancing, and high-level cryptographic systems. The paper also addresses challenges to implementation, including hardware constraints, high implementation costs, regulatory complexity, and the need for immediate interdisciplinary expertise. The paper lastly prescribes strategic imperatives for financial institutions, policymakers, and investors in preparation for an impending future enabled by quantum technology.