Singapore’s OCBC Bank has launched a research partnership with Singapore’s three major universities to explore quantum technology applications in derivative pricing, fraud detection, and data security.
The findings from the research will help the banking sector assess the suitability of applying quantum technology to key banking operations.
It will collaborate with the National University of Singapore (NUS), Nanyang Technological University, Singapore (NTU Singapore), and Singapore Management University (SMU).
This is a 12-month research programme.
OCBC will work with the Centre for Quantum Technologies at NUS to use quantum computing to speed up Monte Carlo simulations for financial derivative pricing.
The goal is to increase simulation speed and accuracy to enable real-time portfolio rebalancing and risk modelling.
Enhance fraud detection
OCBC partners with SMU to apply quantum machine learning to fraud detection.
The team will use quantum computing to analyse complex data and detect suspicious patterns accurately.
This enhances real-time fraud detection and strengthens risk management.
Further, the bank partners with NTU to deploy post-quantum cryptography (PQC) to strengthen data security.
These encryption methods are designed to resist quantum-enabled cyberattacks.
By proactively integrating PQC, it aims to protect sensitive information and defend against emerging threats.
The findings from the collaborations will be published in research papers and journals, benefiting the wider financial sector.
The research collaborations are in line with Singapore’s ambition to be a leading hub for quantum technology development and deployment.
Singapore will invest close to S$300 million to boost quantum technology research and talent.
This includes efforts to build processors for quantum computers locally and develop quantum computing applications for industry use cases under the National Quantum Computing Hub.
OCBC builds on existing partnerships, including quantum key distribution trials with Singtel.
It is also one of the banks collaborating with the Monetary Authority of Singapore on a proof-of-concept sandbox to evaluate the use of quantum key distribution to securely transfer financial data.
