Skip to main content
SpringerLink
Log in

Enhancing the Financial Sector with Quantum Computing: A Comprehensive Review of Current and Future Applications

  • Conference paper
  • First Online:
Proceedings of 22nd International Conference on Informatics in Economy (IE 2023) (IE 2023)

Part of the book series: Smart Innovation, Systems and Technologies ((SIST,volume 367))

Included in the following conference series:

  • 82 Accesses

Abstract

Quantum Computing is currently a disruptive and game-changing technology that challenges the development of various industries, and it is a new paradigm in business software development. In this paper, we explore the current and future applications and research of quantum computing in the financial sector and present a SWOT analysis to evaluate its potential impact. We begin by introducing the fundamental concepts of quantum computing. Next, we analyze existing use cases and research on quantum computing in the financial sector. Finally, the SWOT analysis highlights the strengths, weaknesses, opportunities, and threats associated with implementing quantum computing in the financial sector. Our study emphasizes the transformative potential of quantum computing to reshape the financial sector by enabling faster processing, faster communication, better security, new financial services, solving complex problems, and more accurate decision-making processes. Quantum computing can significantly impact the following financial areas: portfolio optimization, risk management, option pricing, high-frequency trading, blockchain and cryptocurrencies, and AI applications (such as fraud detection and credit scoring).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Albareti, F.D., Ankenbrand, T., Bieri, D., Hänggi, E., Lötscher, D., Stettler, S., Schöngens, M.: A Structured Survey of Quantum Computing for the Financial Industry (2022). https://arxiv.org/abs/2204.10026. Accessed 10 March 2023

  2. Baaquie, B.E., Kwek, L.C.: Quantum algorithm for option pricing. In: Quantum Computers. Springer, Singapore (2023). https://doi.org/10.1007/978-981-19-7517-2_14

  3. Biamonte, J., Wittek, P., Pancotti, N., Rebentrost, P., Wiebe, N., Lloyd, S.: Quantum machine learning. Nature 549, 195–202 (2017)

    Article  Google Scholar 

  4. Dietz, M., Henke, N., Moon, J., Backes, J., Pautasso, L., Sadeque, Z.: (McKinsey). How Quantum Computing Could Change Financial Services (2020). https://www.mckinsey.com/industries/financial-services/our-insights/how-quantum-computing-could-change-financial-services. Accessed 8 March 2023

  5. Dungey, T., Abdelgaber, Y., Casto, C., Mills, J., Fazeam Y.: Quantum Computing: Current Progress and Future Directions (2022). https://er.educause.edu/articles/2022/7/quantum-computing-current-progress-and-future-directions. Accessed 8 March 2023

  6. Egger, D., Gambella, C., Marecek, J., McFaddin, S., Mevissen, M., Raymond, R., Simonetto, A., Woerner, S., Yndurain, E., Quantum Computing for Finance: State of the Art and Future Prospects (2021). https://arxiv.org/abs/2006.14510, Accessed 8 March 2023

  7. Galvin, R.: (Deloitte). The paradigm shift of Quantum Computing and the opportunity for Financial Services (2021). https://ukfinancialservicesinsights.deloitte.com/post/102gtax/the-paradigm-shift-of-quantum-computing-and-the-opportunity-for-financial-service. Accessed 18 March 2023

  8. Gill, S.S., Kumar, A., Singh, H., Singh, M., Kaur, K., Usman, M., Buyya, R.: Quantum computing: a taxonomy, systematic review and future directions. Software Pract. Exp. 52(1), 66–114 (2021). https://doi.org/10.1002/spe.3039

  9. Herman, D.A., Googin, C., Liu, X., Galda, A., Safro, I., Sun, Y., Pistoia M., Alexeev, Y.: A Survey of Quantum Computing in Finance (2022). https://arxiv.org/abs/2201.02773. Accessed 8 March 2023

  10. ISO TC68/SC2/WG11, Quantum Computing and the Financial Services Industry (2021). https://committee.iso.org/sites/tc68/home/articles/content-left-area/articles/quantum-computing-in-the-financi.html. Accessed 3 March 2023

  11. Kappert, N., Karger, E., Kureljusic, M.: Quantum computing—the impending end for the Blockchain? Pacific Asia Conference on Information Systems (PACIS), Dubai, UAE (2021), Available at SSRN: https://ssrn.com/abstract=4075591

  12. Korolov, M.: (Enter Quantum). Quantum Computing for Financial Services: Improving Efficiencies and Preventing Fraud (2022). https://www.quantumbusinessnews.com/applications/quantum-computing-for-financial-services-improving-efficiencies-and-preventing-fraud, Accessed 8 March 2023

  13. Laghari, A.A., Shah, Laghari, R.A., Kumar, K., Waqan, A.A., Jumani, A.K.: A review on quantum computing trends & future perspectives. EAI Endorsed Trans. Cloud Syst. 7(22) (2022)

    Google Scholar 

  14. Njegovanović, A.: The Importance of quantum information in the stock market and financial decision making in conditions of radical uncertainty. Int. J. Soc. Sci. Stud. 11(1), 54–71 (2023)

    Article  Google Scholar 

  15. NTT Ltd. Quantum computing in finance (2022). https://www.aqt.eu/GDC_EMEA_Whitepaper.pdf. Accessed 8 March 2023

  16. Orús, R., Mugel, S., Lizaso, E.: Quantum computing for finance: overview and prospects. Rev. Phys. 4(100028), 1–12 (2019)

    Google Scholar 

  17. Piotrowski, E.W., Sladkowski, J.: Quantum Game Theory in Finance (2004). https://arxiv.org/abs/quant-ph/0406129. Accessed 4 March 2023

  18. Propson, D.: (World Economic Forum and Deloitte), Forging New Pathways: The next evolution of innovation in Financial Services (2020). https://www3.weforum.org/docs/WEF_Forging_New_Pathways_2020.pdf. Accessed 4 March 2023

  19. Raj, A.: (Techwire Asia). Here’s how quantum computing can enhance financial services (2023). https://techwireasia.com/2023/01/heres-how-quantum-computing-can-enhance-financial-services. Accessed 7 March 2023

  20. Rebentrost, P., Gupt, B., Bromley, T.R.: Quantum computational finance: Monte Carlo pricing of financial derivatives (2018). https://arxiv.org/abs/1805.00109. Accessed 1 March 2023

  21. Shah, F.: Quantum Computing In Finance: A quick review (2021). https://quantumzeitgeist.com/quantum-computing-in-finance-a-quick-review. Accessed 4 March 2023

  22. Stamatopoulos, N., Egger, D., Sun, Y., Zoufal, C., Iten, R., Shen, N., Woerner, S.: Option Pricing using Quantum Computers (2019). https://arxiv.org/abs/1905.02666. Accessed 2 March 2023

  23. Tekkali, C.G., Natarajan, K.: Smart payment fraud detection using QML—a major challenge. In: Proceedings of the Third International Conference on Artificial Intelligence and Smart Energy (ICAIS 2023), p. 523–526, IEEE Xplore Part Number: CFP23OAB-ART, Coimbatore, India (2023)

    Google Scholar 

  24. van Biljon, P.: (Financier Worldwide Magazine). Closer than you think—quantum computing in finance. Special Report: Business Strategy & Operations (2021). https://www.financierworldwide.com/closer-than-you-think-quantum-computing-in-finance. Accessed 4 March 2023

  25. Wilkens, S., Moorhouse, J.: Quantum computing for financial risk measurement. Quant. Inf. Proc. 22, Article number: 51 (2023)

    Google Scholar 

  26. Woerner, S., Egger, D.: Quantum Risk Analysis (2018). https://arxiv.org/abs/1806.06893. Accessed 1 March 2023

  27. Yndurain, E., Woerner, S., Egger, D.: Exploring Quantum Computing Use Cases for Financial Services (2019). https://www.ibm.com/downloads/cas/2YPRZPB3. Accessed 8 March 2023

Download references

Author information

Authors and Affiliations

  1. West University of Timisoara, Timisoara, Romania

    Brandas Claudiu, Enache Cosmin, Didraga Otniel & Albu Andrei

Authors
  1. Brandas Claudiu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Enache Cosmin
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Didraga Otniel
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Albu Andrei
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Didraga Otniel .

Editor information

Editors and Affiliations

  1. Department Economic Informatics and Cybernetics, Bucharest University of Economic Studies, Bucharest, Romania

    Cristian Ciurea

  2. Department Economic Informatics and Cybernetics, Bucharest University of Economic Studies, Bucharest, Romania

    Paul Pocatilu

  3. Romanian Academy, Bucharest, Romania

    Florin Gheorghe Filip

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Claudiu, B., Cosmin, E., Otniel, D., Andrei, A. (2024). Enhancing the Financial Sector with Quantum Computing: A Comprehensive Review of Current and Future Applications. In: Ciurea, C., Pocatilu, P., Filip, F.G. (eds) Proceedings of 22nd International Conference on Informatics in Economy (IE 2023). IE 2023. Smart Innovation, Systems and Technologies, vol 367. Springer, Singapore. https://doi.org/10.1007/978-981-99-6529-8_17

Download citation

Publish with us

Policies and ethics

Search

Navigation