Enterprise Quantum
for Finance, Banking & Insurance
Quantum computing promises to unlock new opportunities in risk management, pricing, reducing transaction costs and overhead, and more accurate forecasting — to the tune of $42B-$67B in additional operating income over the next several decades, according to BCG.
Portfolio Optimization
Optimizing investment portfolios is a problem of great interest in quantitative finance.
Investors seek the optimal allocation of capital among assets to maximize returns and reduce risk, while respecting some investment restrictions. Today, sophisticated investors use automated algorithms to optimize the trading of assets within a portfolio, but current models can only account for so many variables before running up against the limits of classical computing.
Quantum-Ready Applications® for Finance, Banking and Insurance
Trading and Portfolio Management
Risk Management
Pricing
Trading and Portfolio Management
Risk Management
Pricing
Key Challenges
Zapata Solutions
Capital Allocation Optimization
Optimize how capital is allocated to achieve risk and return goals.
Loan Portfolio Optimization
Optimize for risk across lending product portfolios.
Index Tracking
Reduce tracking errors in portfolios that replicate the performance of financial indices such as the S&P 500.
Algorithmic Trading
Determine the optimal execution strategy for high-frequency trading to increase risk-adjusted returns.
Auto-Hedging
Dynamically hedge existing investments with balanced assets, such as bonds, to minimize risk.
BBVA
Monte Carlo simulations are commonly used to assess credit risk, stress-test financial scenarios, and set the prices of derivatives. They are also extremely complex, costly, and time-consuming, making them an ideal candidate for quantum speedup.
In our collaboration with BBVA, we designed novel quantum circuits that reduced the resources required to run quantum Monte Carlo simulations by orders of magnitude. However, the work revealed that Monte Carlo is not feasible on near-term devices and will not be viable for several years, if ever.
Orquestra® Benefits for Finance, Banking and Insurance
Orchestration Across Environments
Leverage the quantum and other heterogenous classical compute resources best suited for your tasks, without getting locked into any one hardware platform. Deploy across hybrid backends at enterprise scale.
Data Management & Velocity
Store, retrieve, and analyze large datasets. Streamline data management from ingestion to export to accelerate data velocity.
Open Framework
Keep what works now. Integrate existing and future solutions with a framework optimized for extensibility, interoperability, and innovation.
Workflow Development and Deployment
One unified platform to go from research to development to deployment with extensible, scalable, modular workflows.
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