One of the first areas where quantum computing will have a tangible effect is in finance and one French startup wants to be one of the first to gain an audience
We are already living in a world where technology is influencing the world of finance. Did you know that the financial services industry — particularly those firms focused on high-frequency trading (HFT) and hedge fund — spends more money on AI-related services than any other sector?
Nor did I before writing this piece.
Yet, the interest in such services is rising in other sectors of the financial services, too.
Insurance and fintech companies are among those curious, believing model validation, market impact analysis, algorithmic trading and portfolio composition can be best serviced by AI rather than human brainpower and intuition.
This is exciting, no doubt. Even so, there may be a technology on the scene that can outperform AI in financial modelling and predicting future outcomes on the stock markets etc.
Quantum computing (QC).
Already we can witness the rise of startups in the fledgling QC ecosystem that offer their insight into some of the most difficult challenges facing humanity in the new decade, like data encryption, cybersecurity, the problems of supply chain logistics, and drug R&D.
The list goes on.
And with these problems, come the solutions. Some, unsurprisingly, with clever people behind them.
Meet QuantFi, a startup intent on ‘creating quantum computer algorithms for the financial services industry’.
‘Financial services firms will be among the earliest adopters of quantum computing technology.’
— Kevin Callaghan QuantFi
Working with academic research establishments in the QC sphere, the team at QuantFi harnesses that knowledge along with its own in finance.
A French-based company established in 2019, their business model is built around ‘creating quantum computer algorithms for the financial services industry’ to deal with problems in areas such as risk management and derivative pricing.
‘In addition to pure quantum applications’, COO Kevin Callaghan said about the startup, ‘QuantFi also provides ”quantum ready” solutions — algorithms that can be run on traditional computers today and a quantum computer in the future thereby providing financial institutions with a near-term ROI.’
The two-person founder team of CEO Paul Hiriart and his partner Kevin Callaghan have years of experience in banking, as well as structured and quantitative finance between them. Backed by a reliable team specialized in physics, mathematical logic and quantum technologies, QuantFi is well-rounded in all areas. With these skills, the startup hopes to find a niche in the QC industry and build up its expertise in portfolio management using quantum principles.
When TQD asked Kevin Callaghan about the QC ecosystem, the COO gave a very interesting response:
‘Breakthroughs from Honeywell and others will bring quantum computing science much closer to near-term reality and software developers will need to be prepared.’
Earlier this year, in an exciting move for the startup, QuantFi became a member of the IBM Q Network, leveraging on the American corporation’s expertise within the sector.
And with French government ministers proposing what they call the ‘Quantum plan’, a €1.4B investment in the space over the next five years, it looks like QuantFi could just be in the right place at the right time.