Public-private partnership necessary for R&D in quantum computing in financial services: WEF report

Public-private collaborations, targeted R&D investments, and adaptive regulatory frameworks will be essential in driving quantum adoption while addressing critical concerns such as cybersecurity, data privacy, and ethical implications, said the World Economic Forum (WEF) in its recent report.

The World Economic Forum’s Quantum Technologies: Key Strategies and Opportunities for Financial Services Leaders outlines how quantum technologies are expected to transform the financial sector by enabling faster data processing, more accurate predictions, and stronger security systems.

But to realise this potential, financial institutions must act now, taking a phased and structured approach to integration.

Quantum computing is positioned as a key enabler for financial services, offering enhanced risk modelling, fraud detection, and portfolio optimisation. According to a 2023 McKinsey report quoted by the WEF, the use of quantum computing in the financial services industry is expected to generate up to $622 billion in additional value globally by 2035.

“Quantum computing offers the ability to solve highly complex optimisation, simulation, and data analysis challenges. Use cases include risk modelling, fraud detection, and portfolio optimisation, among many,” the report stated.

The report recommends that organisations begin with pilot projects and proof-of-concept initiatives, refine their strategies based on outcomes, and scale up as the technology matures. Collaborating with academia and tech experts will be critical to staying ahead in this space.

Quantum sensing, though still in the early stages, can improve measurement accuracy in high-frequency trading and infrastructure monitoring. While immediate applications are limited, financial institutions are encouraged to track developments and assess potential long-term value in areas such as ESG-focused investing and infrastructure resilience.

Quantum security and communications present the most urgent imperative. With classical encryption methods at risk from future quantum computers, the report advises the immediate adoption of post-quantum cryptography (PQC) and pilots for quantum random number generation (QRNG). Cryptography refers to the methods used to secure data and communications, while QRNG creates unpredictable random numbers using quantum physics to make encryption much stronger and harder to break. Institutions should also start collaborating with telecom providers to explore use cases for quantum key distribution (QKD) in securing inter-bank links.

The report highlights that integrating both quantum-resistant and quantum-native technologies will help financial institutions build layered security systems and prepare for evolving threats. Crypto agility—being able to adapt encryption protocols as standards shift—is described as essential to maintaining trust and operational continuity.

To support this transition, the report urges financial leaders to align their roadmaps with six strategic pillars: research and development, infrastructure enablement, public-private collaboration, entrepreneurship support, education and workforce development, and responsible deployment. It also calls for global coordination on regulations and standards to ensure the ethical, secure, and inclusive adoption of quantum technologies across the sector.