HSBC has announced a three-year collaboration with IBM to explore the use of quantum computing.

The agreement, which will see HSBC join IBM’s accelerator programme, is designed to boost the bank’s quantum capabilities and examine how the technology can be applied to the financial services market.

More specifically, HSBC will explore the use of quantum computing for pricing and portfolio optimisation, identifying fraud and also managing its net-zero reporting.

In addition to internal training programmes and the recruitment of quantum computing research scientists, HSBC will also get access to IBM’s quantum computing technology including Eagle, a 172-quibuit processor.

“[Quantum computing] has the potential to transform how we run areas of the bank by addressing challenges which classical computers may never be able to solve alone,” said HSBC CEO Colin Bell who described the quantum as “potentially game-changing technology for financial services”.

The advanced processing capability of quantum technology enables computers to perform much more advanced calculations.

"Financial institutions and organisations around the world are eagerly awaiting real-world applications of quantum computing and exploring industry applications for quantum computing should be a key tenet of any enterprise strategy today," said Dr. Darío Gil, senior vice president and director of IBM Research.

In recent weeks, the financial services market has seen a number of quantum “breakthroughs” announced, including a cyber security project involving Denmark's Danske Bank and a portfolio management application involving Spain’s CaixaBank.

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