What are the benefits of quantum computing for the finance industry?How does quantum computing help the finance industry?
The mentioned features of QCs can have an enormous impact on the future of financial services. There are several tasks where financial forecasting and financial modeling can be supported by QCs for faster and more accurate processes. Notably, portfolio optimization, risk management and asset pricing are some of the most mentioned examples. However, their potential advantages and threats to cryptography make it important for financial service providers to monitor the technology.
Classical computers store and process information in the unit of bits while QCs use quantum bits . Bits represent information in a binary format and can have only two possible values: zero or one. Every piece of information going through a classical computer is essentially a long string of zeros and ones.
Working with qubits is an enormously challenging scientific task because they need to be isolated in a controlled quantum state, which is extremely fragile. The smallest change in the physical environment can cause an imbalance, which is the collapse of the superposition. Complex preventive actions are required, such as supercooled refrigerators, insulation or vacuum chambers to protect the system from losing its equilibrium.
QCs have the ability to solve complex mathematical problems exponentially faster than classical computers, making them ideal for several complex tasks. The finance industry is one of the first runners in testing the technology.