Although quantum computing is still in its early innings, canny financial institutions are finding low-intensity outlets for experimentation and skills-building.

Credit Agricole’s corporate and investment banking arm has successfully completed two experiments that found that it could achieve “faster valuations and more accurate risk assessments” using quantum computing techniques. Quantum is an emerging computing paradigm that promises to perform calculations at blistering speeds.  

The bank initiated the two experiments – around valuing derivatives and anticipating the downgrades of financial ratings – in June 2021 alongside partners Pasqal and Multiverse Computing. It just released the results that it found the experiments to be “very successful.”  

“These two proofs-of-concept demonstrated the potential and reality of quantum computing for finance, despite these technologies still being in their infancy,” Credit Agricole exec Ali El Hamidi said. “We took advantage of this initiative to start developing the internal skills to prepare for a technological breakthrough which, if it happens, will have a direct and decisive impact on competitiveness in our sector.” 

Meanwhile, the likes of HSBC, JPMorgan, and Ally are also experimenting with ways to use quantum computing technology for their benefit, like improving speed and precision of risk analysis, while Banque de France is preparing to protect itself against encryption-breaking quantum tactics.  

Learn more about Credit Agricole’s experiments.