IQT Research Finds That Financial Services Will Spend $450 Million on Quantum Computing by 2026

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Jul 15, 2021, 08:44 ET

NEW YORK, July 15, 2021 /PRNewswire/ -- Revenues from quantum computers and related services sold to the banks and financial institutions will total $450 million by 2026, growing to just over $2 billion by 2030. This prediction comes from a new study by IQT Research, the quantum technology analyst firm based here.

About the Report
The new IQT Research report, Quantum Computing in Financial Services: Requirements, Applications and Expenditures, provides an assessment of which quantum computing capabilities will be most useful to financial firms, along with profiles of specialized service providers such as QuantFi, JoS QUANTUM, Nordic, Quantum Computing Group (NQCG), Multiverse Computing, Quantum Mads, QC Ware and 1Qbit.

The report is based on both primary and secondary research. The primary research included interviews with leading financial institutions as well as on the ongoing interviews carried out by IQT Research throughout the quantum technology sector and end-user base. The secondary research consists of reviews of both technical and business articles related to quantum computing as well as the websites of commercial firms and other organizations involved.

From the Report:

Forecasts to play "what if games" with. The forecasts provided in this report are of quantum hardware, software and services expenditure by the financial sector from 2021 and 2026. As with other IQT Research reports, the forecasts for this report are included in a separate spreadsheet, enabling the reader to play "what if" games. The numbers presented here are based on IQT's forecast models for the entire quantum technology market.
Quantum computing strategies of eighteen financial institutions profiled. Many of the largest banks and other financial institutions already have substantial quantum computing teams in place. With this in mind, this report includes detailed profiles of the internal quantum computing development work being done by 18 leading financial institutions: ABN AMRO, Barclays, BBVA, BNP Paribas, CaixaBank, Citigroup, Commonwealth Bank of Australia, Goldman Sachs, HSBC, JPMorgan, Mizuho Financial Group, Mitsubishi Financial Group, NatWest, Nomura Securities, ScotiaBank, Standard Chartered, UBS and Wells Fargo.
Banks are rapidly moving towards their quantum future: IQT Research believes that financial institutions now have the capital to support significant investment in quantum computing by the banks and other related organizations in the next few years. It claims that there are – or soon will be -- abundant pioneering applications for quantum computing in financial services. Nonetheless, IQT Research says that some interviewees for this report were "frustrated" that their companies were not focusing sufficiently on the opportunities that they saw in quantum computers. Others thought their organizations were too distracted by the hype associated with quantum computing.
The coming quantum disruption in finance. Areas impacted by quantum computing will include trade settlements, risk modeling, accelerating AI/ML, goals-based investment, portfolio construction, tax loss harvesting, fraud detection, analytics-driven CRM, dynamic portfolio management, credit scoring, currency arbitrage, and derivative pricing. For each of these areas, the report takes a look at how quantum computing can add efficiencies and profitability to financial institutions. IQT Research believes that quantum computing has the potential to disrupt financial services to the same degree that occurred with digital computing and high frequency trading in the past.

IQT Research believes that this report will become required reading for marketing and business development executives at quantum computer companies and cloud vendors as well as managers in financial institutions themselves.

About Inside Quantum Technology

IQT Research is a division of 3DR Holdings and the first industry analyst firm dedicated to meeting the strategic information and analysis needs of the emerging quantum technology sector. In addition to publishing reports on critical business opportunities in the quantum technology sector, Inside Quantum Technology produces a daily news website on business-related happenings in quantum technology. https://www.insidequantumtechnology.com/.

3DR Holdings organizes the Inside Quantum Technology conferences. The next conference will be held November 1-5 and covers all aspects of quantum technology. It will be a hybrid event based in New York. https://iqtevent.com/fall/

For more details on the IQT Research financial services report contact:
Lawrence Gasman
Telephone: 434 825 1311
[email protected]

SOURCE IQT Research