Through the collaboration, HSBC is enabled to explore the use of quantum computing for pricing and portfolio optimisation, advance its net zero goals, and mitigate risks
IBM Quantum computation centre. (Credit: IBM)
UK-based investment bank HSBC has entered into a three-year collaboration with IBM to explore the applications for quantum computing in financial services.
The collaboration is designed to strengthen the bank’s expertise in quantum computing and strengthen its organisational readiness to exploit the technology.
Under the partnership, HSBC will obtain access to IBM’s premium plan of quantum computing systems, as part of the IBM Quantum Accelerator programme.
The bank will also gain access to recently announced 127-qubit processor, Eagle, along with IBM’s quantum expertise, to validate and advance potential quantum use cases.
HSBC Bank and HSBC Europe chief executive officer Colin Bell said: “By investing in quantum computing we are innovating for the future, to make banking easier for our customers.
“This technology has the potential to transform how we run areas of the bank by addressing challenges which classical computers may never be able to solve, alone.
“Our work with IBM, a leading provider of quantum computing, is essential to harnessing this potentially game-changing technology for financial services.”
Through the collaboration, HSBC will explore the use of quantum computing for pricing and portfolio optimisation, advance its net zero goals, and mitigating risks, including identification of fraudulent activity.
The bank intends to enhance the quantum technology skills of its employees through internal training programmes, and actively recruit quantum computing research scientists.
According to a recent report from IBM’s Institute for Business Value , dubbed The Quantum Decade, quantum computing has the potential to change how financial institutions tackle their challenges.
IBM Quantum technology is being used by more than 175 clients, including large companies, start-ups, academic institutions and research labs, to advance quantum computing.
It is currently being evaluated for its applications in various industries, including finance, energy, chemistry, materials science, optimisation and machine learning, among others.
IBM Research senior vice president and director Darío Gil said: “Financial institutions and organizations around the world are eagerly awaiting real-world applications of quantum computing and exploring industry applications for quantum computing should be a key tenet of any enterprise strategy today.
“We are excited to team with HSBC to explore applications of quantum technology to their business operations and help turn their aspirations into reality.”