In a In a rapidly evolving technology landscape, few advancements are as promising as quantum computing, which is poised to disrupt and revolutionize the way computers are used today. In an industry where seconds count and precision reigns supreme, quantum computing has great potential to transform the banking industry from the ground up.

No longer science fiction, quantum computing can perform calculations at much faster speeds than traditional computing, pushing the boundaries of science and engineering. The financial sector stands to benefit from this paradigm shift, including revolutionizing predictive modeling, portfolio management optimization and cybersecurity to better protect against imminent future quantum attacks.

The breakthrough in quantum computing appears to be driving two key changes to our modern world: the introduction of quantum networks as the new guardians of our digital assets and ensuring digital privacy and security; and the explosion of algorithmic power which opens the door to numerous opportunities.

As the joke goes: if you’re not going faster, you’re falling behind.

Cybersecurity in the Quantum Age: Failing to Prepare, Preparing to Fail

But as with any disruptive force, there is a trap. The power of quantum computers not only accelerates progress, it also threatens it. Our current encryption methods and systems, which form the backbone of the modern world of cybersecurity, could eventually be defeated by the force of quantum decryption. If the banks don’t act now, we might as well leave the vault door wide open.

This means banks must proactively invest in quantum security solutions that protect our data and passwords from future quantum threats.

BT in your inbox

Start and end each day with the latest news and analysis delivered straight to your inbox.

Currently, the main methods for securing data quantumly are post-quantum cryptography and quantum key distribution (QKD). The first takes a software approach and refers to techniques designed to be computationally difficult for quantum computers to decipher.

Meanwhile, QKD is hardware-focused and uses the principles of quantum mechanics to establish secure channels. Implementing QKD and other advanced encryption methods will ensure the continued security of banking customer information.

Quantum threats are no longer theoretical: they are upon us. Earlier in May 2024, the Chinese Computer Journal documented a quantum breakthrough, successfully breaking RSA encryption even before large-scale quantum machines hit the market. If that doesn’t set off the alarm, what will?

At OCBC, we partner with leading technology companies and engage in research to develop holistic quantum experiences and resilience in the banking sector.

Initiatives such as Singapore’s S$300 million National Quantum Strategy are not just national priorities: they are strategies put in place to better prepare and secure our future, positioning Singapore as a leading leading hub for the development and deployment of quantum technologies over the next five years.

Building a Quantum-Ready Workforce: It Starts with Us

The National Quantum Strategy focuses on four strategic axes: strengthening scientific excellence in quantum research; strengthen engineering capabilities; develop a strong talent pool; and foster innovation and partnerships between businesses.

In line with the strategic directions, OCBC recognizes that defining next steps is essential – and true innovation is impossible without the right people. Our strategy starts with investing in a quantum-ready workforce. To begin harnessing and extracting the full value of quantum computing, we must upskill our workforce with the skills required to not only understand, but master this emerging field.

We are building a future where our people not only work alongside quantum technologies, but lead with them. From quantum algorithm workshops to hands-on use case training, we need to prepare our teams for the quantum-driven future of finance.

Our workforce must adapt to a rapidly changing environment. This requires a sustained approach to educating employees about quantum technologies, their benefits, risks, and industry-specific applications. Firstly, we offer training to all employees to raise awareness and acquire knowledge of the basic concepts of quantum computing. Use case workshops are offered for those interested in deepening their knowledge of complex quantum algorithms and applications. Risk frameworks such as policies, processes and standards also need to be strengthened for the implementation of quantum technology in the near future.

What the future holds: opportunities and unknowns

Quantum computing is rewriting the future of banking, but it’s not just about speeding up calculations or strengthening our cybersecurity. It’s about reshaping the very heart of financial services.

The potential for personalized banking solutions – in which complex algorithms predict customer needs before they arise – and tailored financial products delivered with greater precision are all part of the promise of quantum computing. Imagine predictive models capable of forecasting market developments with near-perfect accuracy, or new financial instruments that we haven’t even imagined yet. The possibilities are staggering.

As we continue to think about quantum technologies and how they will affect industry, it is essential to ask ourselves this question: Will quantum technologies open the door to ethical dilemmas that we are not ready for? Could new financial risks emerge that we haven’t even begun to consider? The answer to both questions is probably “yes”.

But one thing is certain: the quantum era is near. The banks that prepare now will be the ones who define the future of finance – not the ones who react to it.

Proof of concept and quantum research and development are not a luxury; these are necessities. When you see a paradigm shift coming, you don’t wait for it to happen: you build the bridge first.

The writer is Head of Group Operations and Technology, OCBC