Connects decision-makers and solutions creators to what's next in quantum computing

Project targets collateral optimization enabling balancing risks, liquidity and profitability while meeting regulatory constraints

Berenice Baker, Editor, Enter Quantum

September 8, 2023

1 Min Read
HSBC's London headquarters - an office block next to a river
HSBC's London headquarters. HSBC

HSBC has teamed with quantum-computing-as-a-service provider Terra Quantum to explore hybrid quantum technology applications on optimization challenges for business impact.

The project aims to demonstrate the potential of a hybrid quantum solution for complex financial services optimization challenges. One of these is collateral optimization, which involves allocating and managing collateral assets to meet regulatory requirements while minimizing costs.

Collateral optimization involves mathematical and algorithmic strategies to balance risks, liquidity and profitability. Classical computers use linear optimization solvers to balance these, but they struggle as more factors are added to the equation.

This sort of problem is well suited to quantum computing’s ability to effectively handle optimization problems with many factors and could potentially scale better.

“Optimization of capital is one of the core functions in a bank. Quantum technologies have the potential to enhance optimization solutions across many parts of a financial institution. We look forward to realizing the benefits of this in the near-term future,” said Terra Quantum U.K. managing director Vishal Shete.

"Working with HSBC allows us to apply our cutting-edge technology to real-world use cases at a world-class leading financial institution. Hybrid quantum algorithms will revolutionize large-scale intractable optimization tasks in the future. We want to demonstrate some of that potential already today,” said Terra Quantum CEO Markus Pflitsch.

Related:Toshiba Details Progress in Quantum Secure Networks

 HSBC is an early adopter of quantum solutions in banking. It is partnering with Toshiba on quantum-secured networks and working with Quantinuum on projects to explore banking use cases for quantum computing, including cybersecurity, fraud detection and natural language processing.

About the Author(s)

Berenice Baker

Editor, Enter Quantum

Berenice is the editor of Enter Quantum, the companion website and exclusive content outlet for The Quantum Computing Summit. Enter Quantum informs quantum computing decision-makers and solutions creators with timely information, business applications and best practice to enable them to adopt the most effective quantum computing solution for their businesses. Berenice has a background in IT and 16 years’ experience as a technology journalist.

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