Financial services to spend $ 450 million on quantum computing by 2026
Revenues from quantum computers and related services sold to banks and financial institutions will reach $ 450 million by 2026, according to IQT Research.
The forecast provided in this report is for the financial industry’s quantum hardware, software and services spending between 2021 and 2026. The quantum technology analyst firm has researched and launched a report on quantum technology, also suggesting that the value above increases to just over $ 2 billion by 2030.
The report is based on both primary and secondary research. The main research included interviews with leading financial institutions as well as ongoing interviews conducted by IQT Research in the quantum technology industry and end user base. Secondary research consists of reviews of technical and business articles related to quantum computing as well as websites of commercial companies and other organizations involved.
Many of the largest banks and other financial institutions already have large quantum computing teams.
IQT Research believes that financial institutions now have the capital to support significant investments in quantum computing by banks and other related organizations over the next few years. He claims that there are – or soon will be – many pioneering applications for quantum computing in financial services. Still, IQT Research says some people interviewed for this report were “frustrated” that their companies were not focusing enough on the opportunities they saw in quantum computers. Others thought their organizations were too distracted by the hype associated with quantum computing.
Areas affected by quantum computing will include trade regulations, risk modeling, AI / ML acceleration, goal-based investing, portfolio construction, harvesting tax losses, detecting fraud, analytics-based CRM, dynamic portfolio management, credit scoring, currency arbitrage and derivative pricing.
For each of these areas, the report examines how quantum computing can increase the efficiency and profitability of financial institutions. IQT Research believes that quantum computing has the potential to disrupt financial services to the same degree that it has happened with digital computing and high frequency trading in the past.