Even though classic computers have created much value for the financial sector they have their limitations when it comes to solving optimisation problems. Consequently, KPMG, DTU Physics and a large European bank are working on a project to support the development of quantum technology that can achieve better results than traditional computers in relation to optimisation problems. Portfolio optimisation where you choose between some shares based on a budget is one of the ways in which quantum technology will generate better results.
The idea of using quantum technology to solve optimisation problems comes from the world of physics. Because physics can solve these problems if you look at them as energy minimisation problems. In physics, everything will move towards their lowest energy state, such as hot things becoming colder over time. This principle is also true in quantum physics, and it is exactly at the lowest energy state that the best solution to an optimisation problem can be found. Consequently, the theory from physics can be used in quantum technology to create a model or a programme that can solve financial problems in the real world.
The project uses a quantum device that D-Wave has developed for the market, which is especially useful for optimisation problems. In the trial, the device has proved to be capable of exceeding the potential of traditional computers, and thus much more insight has been achieved based on real data.
To learn more about this project you can download the report here:
Troels Steenstrup Jensen
Director, NextGen Operations
KPMG i Danmark
