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White Paper The case for quantum and quantum-inspired computing in nancial services

What if it were possible to optimize short-term funds

management or large portfolios of highly uid assets in near

real-time? Today, this would perhaps just be possible in limited

circumstances, but once the number of assets in these calculations

starts to grow even modestly, the laws of mathematics take

over and the range of possible outcomes quickly spins beyond

the reach of even the fastest supercomputers. But a new way of

tackling these so-called ‘combinatorial optimization’ problems is

removing current constraints, causing CTOs in nancial services

to take a close look at the emerging new classes of quantum and

quantum-inspired computing.

Hitting the limits

When mathematical calculations get complex enough, they hit the

limits of current computing, especially when it comes to optimization

calculations. Here, the number of options to be tested in search of

the best possible combination can quickly result in numbers that

stretch out towards innity. Until recently, these calculations could be

so time-consuming that, by the time an answer was found, it was no

longer relevant.

The complexities are mind blogging: in the case of traditional Data

Encryption Standard (DES), today’s fastest supercomputer would

take around 21 billion years – or one and a half times the age of

the universe, to calculate the correct prime factors of a number with

617 decimal digits (in other words, a 2,048-bit key. However, with a

quantum computer this task could be manageable instantly.

Using computers to nd the optimum sequence in a process that

drives out inefciencies and improves productivity is possible when

the number of variables is limited. However, when the process

involves too many variables, classical computers cannot reach an

accurate answer fast enough to gain any practical benet. The total

cost and time required would be too large, as traditional computers,

even supercomputers, are reaching their limits. This is primarily

because the fundamental property of a traditional computing

processor is based on sequential processing.

As the boundaries of classical computing come into view, there

has been increasing research and investment in the eld of

quantum computing. The principle of quantum computing is not

sequential and it has the potential to evaluate all possible solutions

simultaneously.

Unsurprisingly then, many CTOs in nancial services organizations

are taking a hard look at quantum computing as a possible means to

unlock the gains available from optimization. Spanish banking group

BBVA, for example, has noted that “…integrating the fundamentals

of quantum mechanics into computer science will bring about a sea

change in the depth and breadth of computing power.��

When it is eventually ready to move out of the laboratory and solve

practical real-world problems, quantum computing may be able to

solve such challenges. But it’s not yet ready to solve them from a

scale, applicability and commercial perspective. Fujitsu’s ‘Quantum-

Inspired’ Computing Digital Annealer, on the other hand, is available

now and is helping NatWest Bank solve some of its most complex,

challenging and time-consuming nancial investment problems by

optimizing its mix of high-quality liquid assets including bonds, cash,

and government securities.

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Fujitsu is now helping

NatWest bank solve some of

its most complex, challenging

and time-consuming nancial

investment problems

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