Financial Services in the Era of Quantum Computing, AI & Blockchain
The computing world is positioned to transform many industries with the coming together of technologies like AI and Blockchain when boosted by the brute power of Quantum Computing. So as I went about reading reams of news and articles on the subject — here are the areas and examples where I see these cutting-edge technologies having a profound impact in an industry that is very close to my heart — Financial Services. Needless to say, we may be already seeing some of these roll-out even now in some small experimental way while others may roll-out over as long as a decade.
Risk Management: Ask any financial services expert and he’ll tell you that risk management is perhaps the core of their business. AI can be leveraged for hyper-dynamic risk assessment by considering a multitude of factors from micro (at an individual level) or macro (at national level) and even geo-political level. And risk management / portfolio optimization can be done for ideal results under any scenario. But the computation power needed for running such complex algorithms is where quantum computing can come to the fore enabling the complex AI algorithms to be performed in a matter of seconds if not less.
Security: Conventional encryption and security solutions (that secure majority of our financial transactions) are obsolete when faced with the threat of quantum computing. And this is where Quantum Cryptography comes into play to secure not just our financial transactions but also our communication. Furthermore, the area of Fraud Detection will also get revolutionized. Remember the movie, Minority Report? Now juxtapose that with financial fraud — and you have the possibility of preventing the fraud well before it is committed (if not apprehending the fraudster before he commits the fraud).
Marketing: I’m sure we’ve all experienced how we are shown an advert online for some product/service just when we are likely to need it especially from annoying ecom platforms. Now picture that for financial services — being offered a financial product just when you are likely to need it. And if I may take the liberty to let my imagination run wild — what if your friendly neighbourhood bank could forecast a poor financial or impulse purchase choice (that you are about to make soon enough) and presents you with a saner alternative (that is the kind of banking I would look forward to). Complex AI algorithms powered by limitless computational power from quantum computing could possibly become powerful enough to predict such unwise and impulsive decision-making and be smart enough to present you (and me) with an alternative that is not only financially smarter but also profitable for the bank (while also being low on risk).
And the above is just a small sampling of what is possible. Surely there are other geeky geniuses out there coming up with ideas and solutions that go way beyond things listed above. And that is a good thing — as they’ll provide me with more food for thought and new topics to write articles like these. 😊
