As technology leaps ahead, quantum computing may offer a new frontier, driving development in areas including AI. And that is galvanising the Singapore-headquartered banking group to step up research efforts with a number of academic institutions.

OCBC is deepening its push into quantum computing by partnering with three academic institutions in Singapore for a 12-month research collaboration.

The bank, which is the parent of Bank of Singapore, the private banking arm of OCBC, announced yesterday that it has teamed up with the National University of Singapore (NUS), Nanyang Technological University, Singapore (NTU Singapore), and Singapore Management University (SMU).

The research initiative will explore potential quantum computing applications in derivative pricing, data security and fraud detection, OCBC said in a statement.

The research collaboration agreement was signed in the presence of David Koh, chief quantum advisor, and chief of digital security and technology at the Ministry of Digital Development and Innovation, who also serves as chief executive of the Cyber Security Agency (CSA) of Singapore.

According to a definition given by IBM, quantum computing “harnesses the unique qualities of quantum mechanics to solve problems beyond the ability of even the most powerful classical computers.” Areas of focus include quantum hardware and algorithms. “While still in development, quantum technology will soon be able to solve complex problems that classical supercomputers can’t solve (or can’t solve fast enough),” IBM says.

(A classical computer is a type of computer that uses bits, represented by miniature switches, with each switch being either in the off position (zero) or in the on position (one), to process information.)

A related area is quantum AI, which aims to use the enhanced capabilities of quantum computing to advance artificial intelligence. Use cases for AI in the wealth management sector are rapidly expanding, from co-pilot tools to advanced data analytics.

OCBC highlighted that Singapore plans to invest nearly S$300 million (about $233.3 million) to support quantum technology research and talent development. This includes building quantum processors locally and developing applications for industry through the National Quantum Computing Hub.

Findings from the research collaboration with NUS, NTU and SMU will be published in peer-reviewed technology journals.

“Quantum computing can rapidly process extensive datasets and provide enhanced computational power, promising to solve problems beyond the reach of today’s supercomputers more efficiently. Post-quantum cryptography encrypts data using complex algorithms that are hard for quantum computers to break, securing systems and protecting sensitive information,” OCBC said in its statement.

Signing ceremony

Photo caption (from left to right): Professor Wang Huaxiong, School of Physical & Mathematical Sciences, NTU, Director, Strategic Centre for Research in Privacy-Preserving Technologies & Systems (SCRIPTS) and Co-Director, Digital Trust Centre (DTC); Praveen Raina, Head of Group Operations and Technology, OCBC; David Koh, Chief Quantum Advisor, Chief of Digital Security and Technology, MDDI, and Chief Executive, CSA; Professor Valerio Scarani, Deputy Director, Centre for Quantum Technologies, National University of Singapore, and Associate Professor Zhu Feida, Associate Dean, Partnerships and Engagement, School of Computing and Information Systems.

Market outlook
In a report published on 18 July 2024 by Boston Consulting Group – authored by Jean-François Bobier, Matt Langione, Cassia Naudet-Baulieu, Zheng Cui, and Eitoku Watanabe â€“ BCG forecast that quantum computing could generate between $450 billion and $850 billion of economic value by 2040, supporting a $90 billion to $170 billion market for hardware and software providers.

The report explained that quantum computers can address problems beyond the reach of classical computing. As the size of these “intractable” problems increases, the time and computing power needed to solve them exactly (rather than approximately) grows exponentially â€“ making them unmanageable for "classical" machines. Applications include simulating the colour emitted by a dye, analysing the conductivity of a material, or determining the properties of a molecule in drug development.

"For practical systems, exact calculations require more transistors than there are atoms in the universe,” the report stated â€“ highlighting why famed US physicist Richard Feynman first proposed quantum computing in 1981.

Accuracy remains a key differentiator. “AI has made inroads into problems once deemed intractable, leading to speculation that quantum computing may play a lesser role. But the reality is more nuanced,” the BCG report said. “AI depends on training data, which imposes limits on precision and accuracy. Quantum computing does not face such constraints and thus offers superior potential.”

Since BCG’s previous study in 2021, the overall market outlook remains consistent. “Short-term challenges such as circuit depth and fidelity rates do not jeopardise the long-term trajectory of the technology,” the authors concluded.

(The main picture, perhaps appropriately, is an AI-generated image depicting a quantum computer.)