final experiences on real use cases in finance

(Boursier.com) — Crédit Agricole CIB and Europe’s technology leaders in quantum computing, Pasqal and Multiverse Computing, announce the final results of 2 experiments using quantum computing in finance.

2 PoC (“Proof of Concept” or “Preuve de Concept”) launched by Crédit Agricole CIB in June 2021 aimed to evaluate, on the one hand, the contribution of an algorithmic approach inspired by quantum computing, and on the other hand. , the potential of quantum computing for finance in two areas: financial product valuation and credit risk measurement.

Thus, the bank preferred to join forces with the French company EasterThe Spanish company is the leader in the production of quantum computers in Europe Multiverse Computingspecializes in quantum and “quantum-inspired” algorithms that can be used in conventional computing infrastructures.

An experiment on valuation of derivatives in capital markets with Multiverse

The goal was to test the performance improvement of a quantum computing-inspired approach to the evaluation of derivatives. Indeed, recent studies have highlighted the contribution of neural networks for this type of computation.

However, neural networks are difficult to use in many cases due to their expensive training in terms of memory and time. However, algorithmic techniques inspired by quantum computing allow to optimize the speed and memory footprint of this training phase. Key: faster assessment and more accurate measurement of risk…

An experiment on counterparty financial downgrade anticipation with Pasqal and Multiverse

The goal was twofold: first, to measure the capacity of a quantum computer to solve a specific problem, in the current state of the technology; then evaluating the evolution of the performance of the results with the number of qubits used. Thus, the Bank chose the option of use in production, which allows to benefit from a real point of comparison; it is the expectation of a counterparty’s credit rating downgrade over a 6- to 15-month horizon.

It is possible to get good results with classical calculation and thanks to heuristics. However, these methods do not work for all problems, and the obtained results cannot be guaranteed to be close to the optimal solution. Using quantum parallelism in the theory allows finding good solutions more efficiently.

Success of two experiments

2 experiments that took place within a year and a half were crowned with success. A clear speedup of computing time with less memory space has been measured using methods inspired by quantum computing, which paves the way for their use in production to evaluate derivatives. As for the implementation of Pascal on a quantum computer, the selected problem can be solved in real conditions, with real Crédit Agricole CIB data, up to 60 cubes. Results from 50 qubits are as accurate as production results. Projections show that this performance could exceed 300 qubits, a power that should be available in the industry by 2024.

Ali Al Hamidi, project sponsor within Crédit Agricole CIB, states: “These 2 PoCs have allowed us to concretely demonstrate the potential and reality of quantum computing for finance while quantum computing technologies are still in their infancy. We have embraced this. The advantage of this initiative, if it happens is to start developing internal skills in preparation for a technological breakthrough that will have a direct and decisive impact on the competitiveness of our sector.”

Pascal President Georges-Olivier Raymond said: “This is the most exemplary experiment ever carried out and ushers in a new era for quantum computing with the first concrete comparisons. One of the results is that the tipping point is not so far away, probably in 2 years. is low and therefore it is important that users like Crédit Agricole CIB adopt these new methods quickly. We thank our partners, Crédit Agricole CIB and Multiverse, for this great achievement.”

Enrique Lizaso, managing director of Multiverse Computing, emphasized: “Thanks to our flagship product – the SaaS Singularity platform, as well as the quantum computers we currently have access to, we support organizations in solving problems. This collaboration with Credit Agricole CIB. , and Pascal for the quantum part, inspired by quantum and clearly demonstrated that economic benefit using quantum solutions is now possible.”

PASCAL

PASQAL builds quantum computers from ordered neutral atoms in 2D and 3D lattices to bring practical quantum advantage to its customers and solve real-world problems. PASQAL was founded in 2019 by Georges-Olivier Reymond, Christophe Jurczak, Professor Dr Alain Aspect, 2022 Nobel laureate in physics, Dr Antoine Broways and Dr Thierry Lahaye from the Institute of Optics. PASQAL has secured more than 140 million euros in financing, combining equity and non-hypothetical financing.

The company recently sold two quantum computers to Genci in France and JFZ in Germany for on-site installation at HPC centers in both countries. Named a Cool Vendor in 2022 by Gartner, PASQAL recently announced a scientific collaboration with the University of Chicago.

Multiverse Computing

Multiverse Computing is a leading quantum software company that designs and develops quantum or quantum-inspired solutions to solve complex problems facing various industries, including finance, to create value and enable a more robust and prosperous economy today.

The company’s expertise in quantum algorithms and quantum-inspired algorithms enables it to obtain optimal results from current quantum devices as well as high-performance classical computers. Its flagship SaaS platform, Singularity, enables professionals across industries to use quantum computing with common software tools. The company also serves companies in the mobility, energy, life sciences and Industry 4.0 sectors.