Cybersecurity, fraud detection, and natural language processing are some of the focus areas of the collaboration. Quantinuum, the world’s largest quantum computing company, will join with HSBC to explore both near- and long-term benefits of quantum computing that could, it says, revolutionize the banking industry.

“Our collaboration with HSBC brings together a deep expertise in the application of quantum computing across a set of areas that are critical in global finance, such as protecting vital data and assets, managing risk, and creating first-of-its-kind customer service approaches”, said Ilyas Khan, Chief Product Officer of Quantinuum. “As we move towards quantum computers that simply cannot be simulated by classical computers, customers will benefit from significant value in terms of innovation and knowledge.”

Strengthen cybersecurity

The first step has been to explore how quantum computing can strengthen cybersecurity within cryptographic keys, combined with post-quantum cryptographic algorithms to proactively ease current and future cyber threats.

The project also involves researching the potential benefits of quantum machine learning (QML) and quantum natural language processing (QNLP). Both QML and QNLP will be explored primarily for fraud detection. QNLP may also be valuable for answering questions or dealing with customer data.

“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.”

Colin Bell, Chief Executive Officer, HSBC Bank plc and HSBC Europe

With this research collaboration, HSBC and Quantinuum say they are “positioned to be at the forefront of developing and implementing quantum-based solutions that have the potential to revolutionize the banking industry”.

Collaboration with IBM

HSBC started its quantum computing journey last year, when the bank announced a three-year collaboration with IBM to explore how quantum computing could be beneficial to the business. It said then that the goal was to explore the use of quantum computing for:

• pricing and portfolio optimisation;
• to advance its net zero goals, and;
• to mitigate risks, including identifying and addressing fraudulent activity. 

“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,” said Colin Bell, Chief Executive Officer, HSBC Bank plc and HSBC Europe

1,000 qubits

Other companies have started looking into quantum computing, but many are still cautiously waiting.

According to the Institute for Business Value’s 2021 CEO study, 89% of the surveyed chief executives did not believe that quantum computing would be a key technology for delivering business results over the next two to three years.

IBM, which is set to launch the world’s first universal quantum computer with more than 1,000 qubits, has projected it to be ready this year. “In 10 years, we will have achieved what took 40 to 50 years in classical computing. In the 1960s, 70s, and 80s, computer science was niche, almost a dark art. But by 2030, we will have figured out how businesses can use quantum computing – with no in-depth knowledge of how it actually works”, said Ilyas Khan Founder and CEO of Cambridge Quantum Computing.

“It would be very strange if any major cloud platform in 2030 does not have a quantum play. Quantum is going to be more impactful than AI or supercomputers,” said Christian Weedbrook, CEO Xanadu Quantum Technologies.