Financial Services
The core functions of financial institutions – from capital optimization to risk management – will improve significantly with quantum technologies, enabling unconditional security from current and future cyber threats.
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Optimize Capital
Deliver exponential improvements in optimization, ranging from portfolio and balance sheet optimization to trade and payment routing.
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Manage Risk
Predict market behaviors through machine learning models and explain the cascading effects of market and price movements through simulation.
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Provide Security
Ensure security of data and communications with clients. Quantum communication and quantum-secure key distribution are the only way of protecting against cyber threats.
Deliver exponential improvements in optimization, ranging from portfolio and balance sheet optimization to trade and payment routing.
Predict market behaviors through machine learning models and explain the cascading effects of market and price movements through simulation.
Ensure security of data and communications with clients. Quantum communication and quantum-secure key distribution are the only way of protecting against cyber threats.
We are 10x more efficient than our competitors in the area of collateral optimization – a key focus for financial institutions. We secure 6 basis points improvement in the cost function, with results that have the potential to improve with scale.
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Portfolio Optimization
Using quantum technologies, we construct portfolios with risk-return parameters that are better than classical approaches. -
Market Trend Prediction
Our quantum machine learning solutions identify market trends with greater prediction accuracy and improved feature extraction, compared to classical machine learning approaches. -
Improved Derivatives Pricing
Our simulation solutions can exponentially reduce the time for complex simulation tasks, compared to methods such as Monte Carlo. This significantly enhances the speed and accuracy of derivatives pricing and risk analysis models. -
Currency Arbitrage
Using our state-of-the art optimization methods, we are able to identify pricing dislocations in the market that others are not able to identify or capture. -
Quantum Secure Internal Network
Using our Quantum Security protocols, we are able to secure the internal networks of global corporates, removing the vulnerability to classical- and quantum-powered cybersecurity threats.
Vishal Shete
Director of Strategy
Collateral management is a key area of focus for financial institutions because of market dynamics and the significant opportunity to minimize funding costs, improve liquidity and reduce operational costs.
Today, approximately $19 trillion is posted in collateral with about 80% met sub-optimally with cash. Terra Quantum showcased the advantage of our proprietary hybrid quantum computing approach in comparison to classical as well as best-in-class quantum algorithm approaches.
We delivered a 6-basis points – which relates to 0.06 % – improvement in optimality and reduced solution time to one tenth of that taken by other approaches. For example, a European bank that posts about €400 billion in collateral could generate a return of around €240 million through the funding efficiency improvement.
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