Quantum computing is destined to be a turning point in understanding how financial markets work. Well, it provides investment strategies with the possibility of exhaustively analyzing a greater number of data and variables, necessary to maximize profitability and minimize risk. For this reason, Kutxabank, in collaboration with Quantum-Mads and INNOLAB Bilbao, has developed a model that applies quantum computing to the most computationally expensive tasks, in order to organize investment strategies through the allocation of assets or ‘asset allocation’. After the success of the theoretical-practical results achieved in the pilot proof of concept and the tests carried out in Fujitsu’s Digital Annealer, the specialized teams are already working on a deeper analysis of the behavior of the algorithm outside the sample and in an environment of currently, as a preliminary step to analyze the processes necessary for its use in specific investments or products.
Second phase of the project
The second phase of the project has just started, with it, it will be possible to optimize the processes put in place and incorporate new functionalities, so that the performance of the running algorithm can be tested. In this phase, the functional prototype will be able to interact with the quantitative model in a real, current environment. The final objective is to create a prototype capable of detecting needs and opportunities that are covered with a technological solution in a real environment, and that concludes with the production of the solution based on the prototype.
Quantum computing and innovation
The strategic alignment and correspondence of corporate values promote innovation within Kutxabank. And it is that, it has an omnichannel relationship model that allows its customers to relate to the Entity in the way they want. In addition, it has a wide catalog of products and services, and with the capacity for transformation in areas such as sustainability, with a significant volume of ‘green’ financing or assets managed under ESG criteria.
Kutxabank successfully applies quantum computing in its investment strategies
Technological experimentation has also had a positive impact on governance and internal processes. The use of the ‘cloud’, robotization or the use of artificial intelligence have optimized certain corporate processes and resources. Big Data, advanced analytics and artificial intelligence make it easier to understand your customers, a key factor when offering highly personalized solutions and services. Corporate learning is strengthened with agile development methodologies, participation in sectoral blockchain consortiums, experimentation in quantum computing technologies or the development of a model for approaching the global fintech ecosystem.