What leading brings: For banks, quantum can dramatically speed up tasks like optimizing portfolios, Monte Carlo market simulations and AI model training. Imagine trying to solve a maze: A regular computer would evaluate each possible path one-by-one; a quantum computer explores all possible paths at once. Quantum won't reorient every job in the bank like AI might. But it will quadrillion-x the performance of very specific tasks, completely transforming the use cases it touches. And banks laying the groundwork now stand to benefit the most.
But … The opportunity is potentially a threat, too. Google’s quantum chip Willow takes five minutes to solve a problem used to benchmark computer performance that would take a normal computer septillions of years (that's 24 zeros...). Apply that same power to attacking the modern encryption banks use to secure client data and you see the potential for trouble.
We’re not there yet. As Yuval Boger, chief commercial officer of quantum computer-maker QuEra told us, quantum computers are “like the Mona Lisa today: very valuable, but not super useful.”
Even with the technology some years away, some banks are positioning themselves to capitalize on opportunities that quantum will bring … and protect against the risks.
🥇WHY JPMC LEADS
JPMorganChase and its quantum chief Marco Pistoia moved early on quantum, and it shows.
JPMC accounts for two-thirds of the quantum job postings at the 50 banks we track. Its researchers have published more than half of all the quantum-related papers produced by that same group of banks. Its investment in Quantinuum (which makes the actual computers, similar to the one pictured above) has led to breakthroughs.
The tech is early in its life cycle but to listen to Pistoia, the bank has squeezed real-world value out of it.
Look at portfolio optimization. On a regular computer, it takes around five minutes to determine which assets will best balance risk and return for an investor because the simulations need to run in a sequence. On a quantum computer, the bank’s algorithm can do it in 0.3 seconds. Pistoia says his team is “exploring quantum-inspired algorithms,” a type of middle ground that gets a regular computer to act more like a quantum computer and increases speed while quantum matures.
Or take quantum key distribution (QKD), a security measure that uses quantum physics to make data transfers (like transactions) secure. The technology is already “out of the lab,” CTO Lori Beer said.
If the quantum game of 2025 is to tee up technological breakthroughs down the road, JPMC shows the way.
🥈HSBC, EUROPEAN BANKS CLOSE IN
Across the Atlantic, as our groupings above show, European banks are fast mounting a quantum challenge.
HSBC has had a dedicated quantum team for more than three years, headed by Philip Intallura. Their mission is to “develop readiness,” Intallura said, which involves being both on offense (as in: using the technology to develop use cases) and on defense.
By defense, he means securing the bank against the threat that quantum poses to cryptography – that’s a “must-do activity whereas compute is a sensible-to-do activity,” Intallura said.
To that end, the bank is trialing quantum key distribution to protect transaction data in its ‘tokenised gold’ and FX trading practices. This method of security insulates the bank against future hackers who’ll also be using quantum computers – or those who are harvesting data now in anticipation of the moment when quantum computers get powerful enough to crack data encryption.
Like JPMC, HSBC is piloting quantum-inspired algorithms, with a focus on fraud detection, where Intallura says improving “by even a couple of percentage points on accuracy” can equate to “a lot of value.” The bank doesn’t have any of those algorithms in production, but Intallura insists there is "incremental value today” in the pilots, with a lot more on the horizon once quantum computers mature.
Some other European approaches caught our eye. Intesa Sanpaolo’s Davide Corbelletto said quantum could “revolutionize tasks like credit scoring and fraud detection.” His team is focused on optimization, stochastic simulation (which has to do with randomness and is used in Monte Carlo simulations) and cybersecurity.
Standard Chartered is looking at quantum to predict trading signals, help with credit decisions and reduce energy, according to Global Head of Data Science & Innovation Elena Strbac. Crédit Mutuel has been exploring use cases related to fraud and risk management alongside IBM for years. BBVA is testing quantum algorithms at scale with AWS.
Stateside, many banks are specializing. Bank of America is one of the most prolific on quantum patents. Goldman Sachs has invested in D-Wave Systems, a company that makes quantum computers, over multiple rounds since 2012. The bank has also worked to develop quantum algorithms for options trading. And Citi hired a director of quantum computing in December of last year.
What’s Next: As with AI, expect to see more banks tout quantum capabilities – and add detail along the way. As other banks make announcements and vendors make breakthroughs, quantum leaders inside banks will be able to elevate investment discussions into the boardroom.
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