The Banking Executive Magazine - February 2023 Issue

Quantum Computing INTRODUCTION Experts foresee that quantum com- puting is the next big tech for 2023 and we cannot ignore it. This article sheds light on quantum computing and its rising importance in various application domains. Then it focuses on the important application of quantum computing in banking and finance. The article concludes with road ahead for Arab banks to em- brace quantum computing. RISE OF QUANTUM COMPUTING In the Economist World Ahead 2023, Jack Hidary, predicated that quantum technologies will have a profound impact on our society from banking to clean energy. Technologies, which include communications, comput- ing, quantum sensing and simula- tion, will bring many benefits and make a dramatic shift in the global cyber-security architecture. Quantum computers are still under development. But as they become more powerful and more reliable, they will pose a threat to how we transmit and store confidential data including bank transactions, sensi- tive government information and in- tellectual property. That is because unlike existing computers, quantum computers will be able to crack the encryption systems that provide se- cure data communication and stor- age, and underpin the global economy. WHAT IS QUANTUM COMPUTING? Quantum computing is a process that uses the laws of quantum me- chanics to solve problems too large or complex for traditional computers. Quantum computers rely on qubits to run and solve multidimensional quantum algorithms. Quantum computing is vastly differ- ent from classical computing. Quan- tum computing solves mathematical problems and runs quantum models using the tenets of quantum theory. Some of the quantum systems used include photosynthesis, supercon- ductivity and complex molecular for- mations. Quantum computers process infor- mation in a fundamentally different way than classical computers. Tradi- tional computers operate on binary bits but quantum computers transmit information via qubits. The qubit’s ability to remain in superposition is the heart of quantum’s potential for exponentially greater computational power. Quantum computers utilize a variety of algorithms to conduct measure- ments and observations. These algo- the BANKING EXECUTIVE 8 ISSUE 170 FEBRUARY 2023 QUANTUM COMPUTING THE UPCOMING BIG TECH FOR BANKS BY DR SOHA MAAD