WEF: Quantum technology's $622 bn opportunity could transform banking and finance
While quantum breakthroughs often sound futuristic, financial institutions are already exploring practical applications. From boosting investment returns to safeguarding digital assets, the financial industry sees quantum as a potential game-changer and a necessary shield against future cyber risks.
- Jul 16, 2025,
- Updated Jul 16, 2025 11:28 AM IST
Quantum technologies are poised to revolutionise the world by solving complex problems through computing, sensing, and communication and it is poised to transform the financial services sector as well. Recent estimations according to McKinsey Digital suggest that quantum computing use cases in the financial services industry could generate up to $622 billion in value by 2035 and thus, as quantum technologies advance, emerging applications in financial services are offering valuable insights to public- and private-sector leaders, according to World Economic Forum’ recent Quantum Technologies report.
While quantum breakthroughs often sound futuristic, financial institutions are already exploring practical applications. From boosting investment returns to safeguarding digital assets, the financial industry sees quantum as a potential game-changer and a necessary shield against future cyber risks.
According to the report, the foremost promising frontier is quantum computing, where banks are experimenting with ways to solve problems too complex for classical machines. For instance, In Turkey, Yapı Kredi bank used quantum computing to analyse its network of small and medium-sized business customers, aiming to detect vulnerabilities that could trigger cascading financial distress.
Traditionally, this level of network analysis could take years; using quantum technology from D-Wave, the bank’s research team ran the analysis in much lesser time. The insights help banks detect hidden risks and manage credit exposure more precisely—a critical advantage in volatile markets.
Similarly, Italian bank Intesa Sanpaolo explored the use of quantum computing to improve fraud detection.
Meanwhile, quantum sensing, though still niche, is finding a foothold in finance through ultra-precise timekeeping. High-frequency trading, where split-second timing determines profit or loss, demands ever-more accurate clocks. Quantum optical atomic clocks, for instance, can achieve timing precision a hundred times greater than today’s standards. A commercial quantum clock called Tiqker was recently delivered to the University of Strathclyde in the UK as part of efforts to build resilient national timing infrastructure. For financial markets, such advances could improve the sequencing and verification of trades, boosting transparency and regulatory compliance as trading volumes grow.
Perhaps the most urgent focus is quantum security and communication. As quantum computers evolve, they will eventually be able to crack the encryption protecting global financial data. To stay ahead, HSBC has integrated quantum-safe technologies into its gold tokenization platform, combining post-quantum cryptography with quantum random number generators. The solution ensures that even as quantum machines become more powerful, transaction data remains secure, protecting not only digital assets but trust in financial systems.
To realize the full potential of quantum technologies in financial services, policy-makers, industry leaders and academics must prioritise six core pillars including R&D, responsible quantum deployment, infrastructure enablement, education and workforce development, public-private collaboration, and entrepreneurship support.
Experts warn that quantum technologies remain in early stages, with practical deployment often years away. Challenges include high costs, scarce talent, and the need to integrate quantum systems with existing financial infrastructure.
Yet with trillions of dollars flowing through global finance each day, the stakes and the opportunities are too large to ignore. As banks, regulators, and tech firms race to tap quantum’s potential, the coming decade could reshape the financial sector in ways still hard to imagine.
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Quantum technologies are poised to revolutionise the world by solving complex problems through computing, sensing, and communication and it is poised to transform the financial services sector as well. Recent estimations according to McKinsey Digital suggest that quantum computing use cases in the financial services industry could generate up to $622 billion in value by 2035 and thus, as quantum technologies advance, emerging applications in financial services are offering valuable insights to public- and private-sector leaders, according to World Economic Forum’ recent Quantum Technologies report.
While quantum breakthroughs often sound futuristic, financial institutions are already exploring practical applications. From boosting investment returns to safeguarding digital assets, the financial industry sees quantum as a potential game-changer and a necessary shield against future cyber risks.
According to the report, the foremost promising frontier is quantum computing, where banks are experimenting with ways to solve problems too complex for classical machines. For instance, In Turkey, Yapı Kredi bank used quantum computing to analyse its network of small and medium-sized business customers, aiming to detect vulnerabilities that could trigger cascading financial distress.
Traditionally, this level of network analysis could take years; using quantum technology from D-Wave, the bank’s research team ran the analysis in much lesser time. The insights help banks detect hidden risks and manage credit exposure more precisely—a critical advantage in volatile markets.
Similarly, Italian bank Intesa Sanpaolo explored the use of quantum computing to improve fraud detection.
Meanwhile, quantum sensing, though still niche, is finding a foothold in finance through ultra-precise timekeeping. High-frequency trading, where split-second timing determines profit or loss, demands ever-more accurate clocks. Quantum optical atomic clocks, for instance, can achieve timing precision a hundred times greater than today’s standards. A commercial quantum clock called Tiqker was recently delivered to the University of Strathclyde in the UK as part of efforts to build resilient national timing infrastructure. For financial markets, such advances could improve the sequencing and verification of trades, boosting transparency and regulatory compliance as trading volumes grow.
Perhaps the most urgent focus is quantum security and communication. As quantum computers evolve, they will eventually be able to crack the encryption protecting global financial data. To stay ahead, HSBC has integrated quantum-safe technologies into its gold tokenization platform, combining post-quantum cryptography with quantum random number generators. The solution ensures that even as quantum machines become more powerful, transaction data remains secure, protecting not only digital assets but trust in financial systems.
To realize the full potential of quantum technologies in financial services, policy-makers, industry leaders and academics must prioritise six core pillars including R&D, responsible quantum deployment, infrastructure enablement, education and workforce development, public-private collaboration, and entrepreneurship support.
Experts warn that quantum technologies remain in early stages, with practical deployment often years away. Challenges include high costs, scarce talent, and the need to integrate quantum systems with existing financial infrastructure.
Yet with trillions of dollars flowing through global finance each day, the stakes and the opportunities are too large to ignore. As banks, regulators, and tech firms race to tap quantum’s potential, the coming decade could reshape the financial sector in ways still hard to imagine.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine