Quantum ComputingPresent and Future in Financial Services

Alberto Acuto | Quantum Practice Lead EMEA |

Business Perspective

Why Quantum Computing… Now?

Why Quantum Computing… Now?

First, find your fit

Steep learning curve

Expect sudden breakthroughs

Many alternative approaches

Market Trends and ForecastThe global quantum computing market generated a revenue of $507.1

million in 2019, and is projected to reach $64,988.3 million by 2030,

progressing at a CAGR of 56.0% during the forecast period (2020–2030).

Increasing funding by government and private firms is driving the growth

of the market across the globe. Among all regions, Europe is expected to

record the fastest growth in the market during the forecast period.

Economic development, robust research & development (R&D) activities,

massive IT spending, growing inclination toward advanced technologies,

along with surging manufacturing and aerospace & defense industries

are some of the key factors driving the European market growth.

Source: P&S Intelligence Private Limited, 2020

Source: Quantum Computing Report, 2020

Quantum Computing is a marathon, not a sprint race. The largest

companies in Automotive, Transportation, Manufacturing, Energy,

Chemicals, Finance and Insurance are actively experimenting the new

technology and how it will transform their business. Though Universal

Quantum Computers are still in their prototypal phase, quantum (and

quantum-inspired) algorithms can be effectively exploited today, through

Quantum Annealers and Digital Annealers – their digital (i.e. non-quantum),

non-Von Neumann counterparts running on specialized hardware (e.g.

FPGA’s or Silicon Photonics). This approach can outperform the processing

power of traditional computers in a wide class of business problems

solvable through combinatorial optimization.

Use Cases Across Sectors and Active Players

Source: Boston Consulting Group analysis, 2018

● Machine learning and artificial intelligence, such as neural networks

● Search

● Bidding strategies for advertisements

● Cybersecurity

● Online and product marketing

● Software verification and validation

IBM

Alibaba

Google

Microsoft

Telstra

Baidu

Samsung

● Logistics: scheduling, planning, product distribution, routing

● Automotive: traffic simulation, e-charging station and parking search, autonomous driving

● Semiconductors: manufacturing, such as chip layout optimization

● Aerospace: R&D and manufacturing, such as fault-analysis, stronger polymers for airplanes

● Material science: effective catalytic converters for cars, battery cell research, more-efficient

materials for solar cells, and property engineering uses such as OLEDS

Airbus

NASA

Northrop Grumman

Daimler

Denso

BMW

Volkswagen

Lockheed Martin

Honeywell

Bosch

● Catalyst and enzyme design, such as nitrogenase

● Pharmaceuticals R&D, such as faster drug discovery

● Bioinformatics, such as genomics

● Patient diagnostics for healthcare, such as improved diagnostic capability for MRI

BASF

Biogen

Dow Chemical

JSR

DuPont

Amgen

● Trading strategies

● Portfolio optimization

● Asset pricing

● Risk analysis

● Fraud detection

● Market simulation

J..P.Morgan

Commonwealth

Bank

Barclays

Goldman Sachs

HSBC

● Network design

● Energy distribution

● Oil well optimization

Dubai Electricity &

Water Authority

BP

Hi-Tech

Industrial Goods

Chemistry & Pharma

Finance

Energy

Quantum technologies in the financial services industry

Portfolio

Optimization

Clearing and

Settlement

Risk

Management

Synthetic

Time Series

Fraud

Detection

NISQ – Noisy Intermediate Scale Quantum

50-100 qubitsA finite number of algorithms are interesting

Universal gate setNo need to worry about gate synthesis

No error correctionGates and readout both introduce errors

Short coherence timesObsessive focus on reducing circuit depth

Restricted qubit connectivityCircuit layout / qubit routing problem is non trivial

Not all qubits/gates are created equalLayout has a major effect on overall fidelity

Strategy in the NISQ Era

Analyze the potential Launch new offeringsLead your own effortGain experience

Technology Perspective

The NTT Vision

Our Vision

2020 Technology Trend #06:

Computer Power Evolution

The inexhaustible demand for computing

power is being tackled through a

combination of new, denser chips and

application-specific architectures. To solve

power requirements additional new materials

like carbon nanotubes, and approaches like

photonics and neuromorphic architectures

are also being investigated and introduced.

Rethinking the computer from principles

of critical phenomena in neural networks

We are here to uncover fundamental

principles and novel technologies that

advance our information processing

beyond state of the art. We exist to rethink

“computation” within the fundamental

principles of quantum physics and brain

science, and to develop hardware and

software simultaneously.

Approaches to Quantum Computing

Quantum

Gate Model

Superconducting

Photonics

Ion Traps

Ising Model

Coherent Ising Machine

Quantum Annealing

Digital Annealing

The NTT Quantum Map

Internal

Capacity

NTT Research

Build simple, efficient and

practical solvers for real-world

problems in our information

intensive society.

Cornell University

Develop a k-SAT solver based on

error detection and error

correction feedback.

Caltech

Develop scalable architecture for

efficient quantum simulation of

many-body spin systems using

OPO networks.

Stanford University

Optical and superconducting

devices for studying the quantum-

to-classical crossover and critical

phenomena in the neural network.

1QBit

Perform research in design and

analysis of a stack of algorithms

that bridge commercially viable

applications.

Swinburne University

Develop and implement the quantum

phase space methods for CIMs.

University of Michigan

Theoretical studies of topological

states with anyon statistics in

nonlinear optics and synthetic

topological matter.

MIT

Develop the photonic accelerators

for deep learning and the

superconducting CIMs for

fundamental study.

AQT

A spin-off from Innsbruck University,

Alpine Quantum Technologies is a

leading player on quantum hardware

based on ion-trap technologies.

JoS Quantum

A startup partner focused on

quantum and quantum-inspired

algorithms for finance, insurance,

energy, and transportation.

IQM

A spin-off from Aalto University and

VTT Technical Research Centre of

Finland, focused on building the first

European quantum computer based

on superconducting circuits.

NTT Ltd. & NTT DATA EMEA

Integrating clients business

cases with quantum and

quantum-inspired techniques.

NTT DATA Quantum Team and

internal academy. NTT & NTT DATA R&D

Research & Development

Headquarters. LASOLV

solution development.

NTT DATA Quantum Lab,

focusing on technology

benchmarking and selection,

prototyping, trial support.

NASA Ames Research Center

Perform benchmark studies of

CIMs vs. modern heuristics on

various optimization problems.

Cambridge Quantum Computing

CQC provides expertise in quantum

software – a quantum development

platform, quantum machine learning,

quantum chemistry, and quantum

augmented cybersecurity.

The NTT Group Global Network

on Quantum Technologies

● Using optical physics to solve problems

● Operable at room temperature

● Fully-connected Ising model

● Now in the basic research stage, and we plan to extend to 100K nodes

(currently 2K nodes)

LASOLV – Laser Ising Machine

The Lab Provides PoCs Using:

D-Wave SystemsD-Wave 2000Q

IBMQuantum Experience

Google, RigettiQuantum Simulators

NTTLASOLV

Service Portfolio:

Consulting on Formulation

Technology Benchmarking

Verification on Real Hardware

Prototyping

Workshops

Trial Support

Lab: Vehicle Routing Planning

1 depo

39 vehicles

273 customers

8.343E+93 patterns

Results:

Calculation time from 10’

down to 1.5’

Total travel distance from

245 Km down to 230 Km

Superior performances and

quality of the simulation

Quantum Computing Lab & Service