Quantum tech provider Quantum Dice has developed hardware to make financial services operations faster and more efficient.
The Oxford, U.K.-based company’s hardware can increase the accuracy in statistical modeling, speeding processes like trading activities and risk assessment by 15% to 20%, Annika Moslein, technical project manager at Quantum Dice, told Bank Automation News Feb. 27 at FinovateEurope.
“We have developed a quantum solution that enhances Monte Carlo simulations [a method of algorithms], which are used for tasks such as portfolio optimization, risk assessments, options pricing and anything that contains uncertainty and forecasting,” Moslein said. “Our solution provides random samples, which allow you to reduce the number of computation steps in your simulation.”
The company’s quantum technology generates random samples based on the quantum behavior of photonic systems [when particles can be either positive or negative until observed], which reduces computing steps, saving cost and time, she said.
For risk assessments, value-at-risk models are run until they provide a reliable estimate, Moslein said, adding that the earlier a reliable estimate is reached, the more computing costs are saved.
Better quality of randomness in the data sets leads to improved accuracy, allowing more targeted predictions, she said.
Quantum Dice has raised 2 million pounds ($2.5 million) since its inception in 2020, with Paris-based venture capital company Elaia, IP Group and Future Planet Capita, and is part of the Google for Startups accelerator program, Moslein said.
The company plans to raise additional funding this year as its hardware is being tested across the United Kingdom, Moslein said.
Banks invest in quantum
Financial institutions like BNP, Citizens Bank, JPMorgan and HSBC are already using quantum computing in their operations for secure communications, risk assessment and trading operations.
Citizens Bank is exploring quantum computing for secure communications, risk analytics and credit scoring, Chief Information Officer Michael Ruttledge previously told BAN.
“The speed of quantum really gives you the ability to digest and analyze vast quantities of data in real time,” Ruttledge said. “With quantum, you are going to see an exponential increase in power and that’s going to really help with some of the more sophisticated AI models.”
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