Quantum Computing in the Finance

Quantum Computing in the Finance

1. Finance Industry - early adopter

   • Mainframe Computers
   • Artificial Intellegence
   • Number of Trades done
     • Complex algoritms > humans
   • Modern Big Banks
     • Quantum Computing

2. History

   • 1980s
     • Quantum mechanics
       • New type of computers
         • Performing calculations
           • Non-quantum machine
   • Google
   • IBM
     • Quantum Hardware

3. Benefits for the finance

   • Financial Calculations
     • Optimisation problem
   • Speed up asset pricing
   • Find better-performing portfolio
   • Improve machine-learning
   • BBVA - Spanish Bank
     • Boost Credit-scoring
   • Spot Fraud
     • More effectively
     • 100x Faster

4. Other industries

   • Aerospace
   • Pharmaceuticals
     • quantum advantage
   • Finance industry may be the 1st
     • small advance
       • lots of money
     • BBVA
       • Research groups
         • Deals with computing firms
     • JPMorgan
     • Standard Chartered
     • The Boston Consulting Group
       • Banks
       • Insurers
         • June
           • 115 experts
             • "more physics and maths phds than some big universities"

5. Portfolio optimisation

   • Investment strategy
     • Quanthum algorithm
       • Picking a mix of 50 assets
         • Most profitable combination
           • 101 300 solutions
             • More than number of atoms
               • Classic computer
                 • 19% of return
               • Quanthum Algorithm
                 • 20-80%
         • Limitation of trades' frequency

6. Limited Hardware

   • Quantum computer's capability
     • "Quibits"
       • 1000-qubits computer
         • Faster than Non-quantum machine
   • Small & Unstable
     • Fast Calculaltion
       • Stable condition breakes
         • Bankers' computations
           • Even on on such machines

7. Competition Begins

   • Google
     • 2019
       • 53-quibit
         • Calculation
           • 10 000 yers for fastest supercomputer
   • IBM
     • 1000-qubit
       • By 2023

8. When?

   • 3-5 years
     • It's profitable
       • No matter the risks
   • 18 months