Major Banks such as JPMorgan Chase, HSBC, and Intesa Sanpaolo are making considerable efforts toward quantum computing, knowing it holds the key to revolutionizing the banking industry.

Nearly 80 percent of the world's largest 50 banks are now actively investing in quantum technology, based on new research by benchmarking platform Evident. This is a move from early experimentation to conscious investment, as the banks take the lead in innovation.

JPMorgan Chase is becoming a leading force in this arena, with two-thirds of all quantum job listings among banks surveyed and producing more than half of all quantum-related research articles. The bank has already used quantum-inspired algorithms to improve portfolio optimization and cybersecurity.

HSBC is also pushing its quantum efforts, deploying quantum key distribution (QKD) technology for foreign exchange trades and tokenized gold transactions to enhance security. Italy's Intesa Sanpaolo, on the other hand, is looking into quantum applications for credit scoring, fraud prevention, and derivative pricing.

“Unlike AI, which permeates all aspects of banking, quantum will revolutionise select use cases with profound impact,” predicted Alexandra Mousavizadeh, Co-Founder & Co-CEO of Evident.

“Quantum will transform areas such as portfolio optimisation, credit scoring, and fraud detection in ways that far exceed today’s computing capabilities.”

This increasing investment is a testament to the financial industry's belief in quantum computing's long-term potential. McKinsey puts the value generated by quantum applications in finance at up to $622 billion by 2035. While large-scale, fault-tolerant quantum computers are years off, banks are already investing heavily to make integration seamless once the technology is ready.

Banks are investigating various use cases, including enhancing collateral optimization, default probability estimation, and liquidity management for corporate banking as well as portfolio modeling, derivative pricing, and high-frequency trading for investment banking. Wealth management, retail banking, and payment could similarly be revolutionized, especially data security and risk assessment.

“Banks that fail to prepare risk being left behind as quantum advances,” Mousavizadeh warned. “Those that embrace quantum now will be well-positioned to harness its transformative potential in the years ahead.”

As quantum computing develops further, banks are setting the stage to leverage its revolutionary power to gain a competitive advantage in a more technology-centric financial environment.