How could quantum computing benefit the Financial Services industry? by predicting market activities months in advance by guaranteeing double returns for fund managers by determining future value of crypto-currencies by enabling complex modeling to optimize portfolios I don't know this yet
Answers
Answer:
Explanation:
The potential benefits of quantum computing for financial services could be: Solving increasing problems in critical areas like cybersecurity to safeguard customer financial data using next-gen cryptography; financial data encoded with quantum cryptography is far more secure than current levels of digital security.
Investment managers may be able to increase portfolio diversity, adjust investments to more accurately adapt to market circumstances and investor goals, and more efficiently speed trading settlement procedures thanks to quantum computing's combinatorial optimization capabilities.
- In order to meet regulatory requirements, financial services organisations are under increasing pressure to balance risk, better hedge positions, and run more diverse stress tests.
- It can be challenging to effectively control the costs of risk on trades due to the complexity and difficulty of liquidity management, derivatives pricing, and risk measurement.
- The scaling of the estimation error now places constraints on Monte Carlo simulations, the method of choice for analysing the impact of risk and uncertainty in financial models.
- The data-processing powers of quantum computers may speed up risk scenario simulations with more precision, while evaluating more outcomes, in response to more complex risk-profiling requirements and escalating regulatory constraints.
Investment managers may be able to increase portfolio diversity, adjust investments to more accurately adapt to market circumstances and investor goals, and more efficiently speed trading settlement procedures thanks to quantum computing's combinatorial optimization capabilities.
#SPJ2