The Banking Executive Magazine - February 2023 Issue

Quantum Computing CHALLENGES FACING QUANTUM COMPUTING The main challenge of implementing quantum computing is the maturity of the technology. Quantum comput- ers are generally designed to solve very specific problems, and they are sensitive to any kind of disturbance, like noise and dust. Various challenges may face banks in seamlessly implementing quantum computing technology because quantum computers are still in early stages. In order to address these chal- lenges banks can enter in partner- ships with quantum computing financial technology firms (quantum fintechs). Banks also face the challenges of tight regulations. New regulation will be needed to control and supervise the use of quantum computing in banks and financial institutions. ROAD AHEAD FOR ARAB BANKS TO EMBRACE QUANTUM COMPUTING Worldwide spending on quantum computing is expected to reach $630 million by 2027 and $2.2 billion by 2030, according to Inside Quantum Technology. Quantum computing ecosystem and its use in various application do- mains will create significant value for industries. Arab banks should prepare to em- brace quantum computing as the technology matures. Technology experts foresee that until about 2030, quantum-computing ap- plications will have a hybrid operat- ing model that is a blend of quantum and conventional high-performance computing. Various key factors will determine the technology’s path to commercial- ization. These factors are: • Funding • Accessibility • Standardization • Collaboration • Partnerships • Expertise • Digital infrastructure Below are suggested steps for Arab banks to prepare for embracing quantum computing: • Step #1. Follow up latest developments in the field of quantum-computing and its application. • Step #2. Collaborate with industry entities and fintech to develop quantum computing based financial serv- ices. • Step #3. Assess risks and opportunities of- fered by quantum computing for banks and financial institutions. • Step #4. Partner with quantum computing developers to facilitate access to knowledge and talent. • Step #5. Invest in quantum-computing hardware and software. • Step #6. Build in-house expertise in quan- tum-computing. • Step #7. Develop a bank digital infrastruc- ture that can meet the basic oper- ating demands of quantum computing. • Step #8. Develop a strategy to embrace quantum computing. the BANKING EXECUTIVE 16 ISSUE 170 FEBRUARY 2023