The financial services sector is already piloting quantum technologies, with several key applications emerging. A new report from the World Economic Forum outlines the opportunities for financial institutions while addressing the associated risks.
From fraud detection and encryption to risk forecasting, three strategic shifts are expected to define the quantum era in banking. The report, titled “Quantum Technologies: Key Strategies and Opportunities for Financial Services Leaders,” developed in collaboration with Accenture, draws on insights from industry leaders to showcase examples of where these technologies are being tested and where they are most likely to be deployed over the long term.
Key applications of quantum technologies fall into three main areas:
1. Quantum computing: More accurate risk modeling, fraud detection, and portfolio optimization.
2. Quantum security and communications: Theoretically unbreakable encryption through methods such as quantum key distribution (QKD) and quantum random number generation (QRNG).
3. Quantum sensing: Precise measurement capabilities that may be used to enhance the synchronization of high-frequency trading (HFT) algorithms.
While still in early stages, the first two areas offer the most potential for the financial services industry, although further development is needed to scale these technologies. The authors emphasize that to derive meaningful value from quantum technologies, financial institutions must move beyond experimentation and pilot phases. Strategic focus is required across several key areas—sustained research and development (R&D) investment, infrastructure enablement, public-private collaboration, engagement with startups and private ventures, targeted education and workforce development, and responsible quantum deployment.
Here are three use cases currently being tested by banks that are expected to gain broader adoption as quantum technologies mature:
1. Quantum computing: Enhanced risk forecasting
As the aftermath of the 2008 Global Financial Crisis demonstrated, understanding and predicting financial crashes is crucial for maintaining global economic stability. However, identifying vulnerabilities in financial institution networks is a complex challenge.
Turkish bank Yapı Kredi has taken a significant step toward addressing this issue by developing an innovative approach to estimating financial risks. The bank created a model to identify potential failure points in its network of small- and medium-sized enterprises (SMEs) to avoid a chain reaction of financial distress across interconnected businesses.
While this would be labor-intensive with classical computing, quantum computing technology from D-Wave allowed them to explore thousands of possible scenarios and pinpoint businesses at risk of financial distress. This ultimately helped the bank make better decisions.
Gökhan Özdinç, the bank’s Executive Vice President of Technology, Data, and Process Management, noted that risk management is one of the most critical components of banking. He explained that an analysis that would traditionally take years to compute was completed in just seven seconds thanks to the technology developed by the bank.
2. Quantum security and communications: Unbreakable encryption
Quantum security and communications technologies can advance the development of theoretically unbreakable encryption using quantum key distribution (QKD) and quantum random number generation (QRNG). Post-quantum cryptography (PQC) algorithms can build resistance to quantum computer attacks, helping to protect sensitive financial data from emerging threats.
Early implementation of PQC meets the “gold standard” of international regulatory directives for encryption—such as those outlined by the US National Institute of Standards and Technology (NIST) and the European Union Agency for Cybersecurity (ENISA).
HSBC is using quantum-secure technologies like PQC virtual private network (VPN) tunnels and QRNG to protect tokenized gold transactions. This ensures data security, blockchain interoperability, and compliance with cybersecurity standards. It also boosts efficiency and liquidity in tokenized asset markets.
Meanwhile, Banco Sabadell undertook a four-month project to explore the adoption of PQC. The initiative aimed to modernize encryption protocols, focusing on crypto agility—the ability of systems to rapidly switch between cryptographic algorithms as threats or standards evolve.
The project helped the bank identify the next steps for a rapid transition to quantum-safe technologies.
3. Quantum computing: Faster fraud detection
In the UK alone, fraud cost the banking industry $1.6 billion in 2024. In April 2025, the UK government committed to investing $162 million in quantum technology to tackle crime, fraud, and money laundering through research hubs and pilot projects.
While traditional machine learning algorithms are frequently deployed to identify fraud patterns, quantum computing holds the potential to enhance speed and accuracy.
Italian bank Intesa Sanpaolo has been exploring quantum machine learning to improve fraud detection—using variational quantum circuit (VQC)-based classifiers to analyze hundreds of thousands of transactions.
Using IBM’s quantum tools, the quantum model outperformed traditional methods in identifying fraud and achieving better accuracy and efficiency with fewer data features.
— news from (The World Economic Forum)
— News Original —
Banking in the quantum era: 3 strategic shifts to watch
Applications of quantum technologies are already being piloted by the financial services sector, with a number of key use cases.
A new report from the World Economic Forum highlights the opportunities for financial institutions, while addressing the risks.
From fraud detection and encryption to risk forecasting, here are three potential shifts to watch in the quantum era.
Imagine if it were possible to predict the next financial crisis before it happened – and put in place measures to prevent it?
This is one of the opportunities quantum technologies represent for the banking sector, according to a new report from the World Economic Forum.
Quantum Technologies: Key Strategies and Opportunities for Financial Services Leaders, in collaboration with Accenture, draws on insights from leaders to show examples of where these technologies are being tested and where they are most likely to be deployed over the long term.
Key applications of quantum technologies fall into three areas:
Quantum computing: more accurate risk modelling, fraud detection and portfolio optimization.
Quantum security and communications: theoretically unbreakable encryption through methods such as quantum key distribution (QKD) and quantum random number generation (QRNG).
Quantum sensing: precise measurement capabilities that may be used to heighten the synchronization of high-frequency trading (HFT) algorithms.
While still nascent, the first two areas provide the most opportunity for the financial services industry, although more will need to happen to scale them.
“To derive meaningful value from quantum technologies, financial institutions will need to go beyond experimentation and pilot phases,” write the authors.
“Strategic focus is required across several key pillars – sustained research and development (R&D) investment, infrastructure enablement, public-private collaboration, engagement with start-ups and private ventures, targeted education and workforce development, and responsible quantum deployment.”
Here are three use cases being piloted by banks that we can expect to see being adopted more widely as quantum technologies reach maturity.
1. Quantum computing: Enhanced risk forecasting
As the fall-out of the 2008 Global Financial Crisis showed, understanding and predicting financial crashes is paramount for maintaining global economic stability.
But identifying vulnerabilities in financial institution networks is a challenge.
Turkish bank Yapı Kredi has taken a significant step towards addressing this issue by developing an innovative approach to estimating financial risks, says the report.
The bank created a model to identify potential failure points in its network of small- and medium-sized enterprises (SMEs) – to avoid a chain reaction of financial distress across interconnected businesses.
While this would be laborious with classical computing, quantum computing technology from D-Wave allowed them to explore thousands of possible scenarios and pinpoint businesses at risk of financial distress.
It ultimately helped the bank make better decisions.
“Risk management is one of the most critical components of banking. An analysis that would traditionally take years to compute was completed in just seven seconds thanks to the technology we developed,” said Gökhan Özdinç, the bank ‘s Executive Vice President, Technology, Data and Process Management.
“Our goal is to carry our clients into the future with a more robust financial infrastructure and to establish a model that will shape the industry.”
2. Quantum security and communications: Unbreakable encryption
Quantum security and communications technologies can advance the development of theoretically unbreakable encryption using quantum key distribution (QKD) and quantum random number generation (QRNG).
Post-quantum cryptography (PQC) algorithms can build resistance to quantum computer attacks, helping to protect sensitive financial data from emerging threats, notes the report.
And early implementation of PQC meets the ‘gold standard ‘ of international regulatory directives for encryption – such as those outlined by the US National Institute of Standards and Technology (NIST) and the European Union Agency for Cybersecurity (ENISA).
HSBC is using quantum-secure tech like PQC virtual private network (VPN) tunnels and QRNG to protect tokenized gold transactions. This ensures data security, blockchain interoperability and compliance with cybersecurity standards. It also boosts efficiency and liquidity in tokenized asset markets.
Meanwhile, Banco Sabadell undertook a four-month project to explore the adoption of PQC. The initiative aimed to modernize encryption protocols, focusing on crypto agility (the ability of systems to rapidly switch between cryptographic algorithms as threats or standards evolve).
The project helped the bank identify the next steps for a rapid transition to quantum-safe technologies.
3. Quantum computing: Faster fraud detection
In the UK alone, fraud cost the banking industry $1.6 billion in 2024. In April 2025, the UK government committed to investing $162 million in quantum technology to tackle crime, fraud and money laundering through research hubs and pilot projects.
While traditional machine learning algorithms are frequently deployed to identify fraud patterns, quantum computing holds the potential to enhance speed and accuracy.
Italian bank Intesa Sanpaolo has been exploring quantum machine learning to improve fraud detection – using variational quantum circuit (VQC)-based classifiers to analyse hundreds of thousands of transactions.
Using IBM’s quantum tools, the quantum model outperformed traditional methods in identifying fraud and achieving better accuracy and efficiency with fewer data features.