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This article outlines our point of view regarding the applicability, state-of-the-art, and potential of quantum computing for problems in finance. We provide an introduction to quantum computing as well as a survey on problem classes in…

Quantum computers are expected to surpass the computational capabilities of classical computers during this decade and have transformative impact on numerous industry sectors, particularly finance. In fact, finance is estimated to be the…

Quantum Physics · Physics 2022-06-29 Dylan Herman , Cody Googin , Xiaoyuan Liu , Alexey Galda , Ilya Safro , Yue Sun , Marco Pistoia , Yuri Alexeev

We discuss how quantum computation can be applied to financial problems, providing an overview of current approaches and potential prospects. We review quantum optimization algorithms, and expose how quantum annealers can be used to…

Quantum Physics · Physics 2019-03-04 Roman Orus , Samuel Mugel , Enrique Lizaso

Quantum computing has garnered significant attention in recent years from both academia and industry due to its potential to achieve a "quantum advantage" over classical computers. The advent of quantum computing introduces new challenges…

Quantum Physics · Physics 2024-08-09 Zhengping Jay Luo , Tyler Stewart , Mourya Narasareddygari , Rui Duan , Shangqing Zhao

Among all the physical platforms for the realization of a Quantum Processing Unit (QPU), neutral atom devices are emerging as one of the main players. Their scalability, long coherence times, and the absence of manufacturing errors make…

Quantum Physics · Physics 2024-09-19 Ettore Canonici , Filippo Caruso

The primary aim of this research was to find a model that best predicts which fallen angel bonds would either potentially rise up back to investment grade bonds and which ones would fall into bankruptcy. To implement the solution, we…

Risk Management · Quantitative Finance 2022-12-12 Harrison Mateika , Juannan Jia , Linda Lillard , Noah Cronbaugh , Will Shin

For the last few decades, classical machine learning has allowed us to improve the lives of many through automation, natural language processing, predictive analytics and much more. However, a major concern is the fact that we're fast…

Quantum Physics · Physics 2021-06-22 Arhum Ishtiaq , Sara Mahmood

In recent years, a CRA (Credit Risk Analysis) quantum algorithm with a quadratic speedup over classical analogous methods has been introduced. We propose a new variant of this quantum algorithm with the intent of overcoming some of the most…

Emerging Technologies · Computer Science 2022-12-21 Emanuele Dri , Edoardo Giusto , Antonello Aita , Bartolomeo Montrucchio

Social financial technology focuses on trust, sustainability, and social responsibility, which require advanced technologies to address complex financial tasks in the digital era. With the rapid growth in online transactions, automating…

In this paper, we present an approach for estimating significant financial metrics within risk management by utilizing quantum phenomena for random number generation. We explore Quantum-Enhanced Monte Carlo, a method that combines…

Emerging Technologies · Computer Science 2025-02-05 Emanuele Dri , Achille Yomi , Muthumanimaran Vetrivelan , Cedric Kuassivi , Ivàn Diego Exposito

Quantum Kernels are projected to provide early-stage usefulness for quantum machine learning. However, highly sophisticated classical models are hard to surpass without losing interpretability, particularly when vast datasets can be…

Risk Management · Quantitative Finance 2024-04-04 Javier Mancilla , André Sequeira , Tomas Tagliani , Francisco Llaneza , Claudio Beiza

Finance is one of the promising field for industrial application of quantum computing. In particular, quantum algorithms for calculation of risk measures such as the value at risk and the conditional value at risk of a credit portfolio have…

Quantum Physics · Physics 2022-01-28 Koichi Miyamoto

Nonlinear Model Predictive Control (NMPC) is a general and flexible control approach, used in many industrial contexts, and is based on the online solution of a nonlinear optimization problem. This operation requires in general a high…

Systems and Control · Electrical Eng. & Systems 2024-11-06 Carlo Novara , Mattia Boggio , Deborah Volpe

Quantum machine learning has the potential for broad industrial applications, and the development of quantum algorithms for improving the performance of neural networks is of particular interest given the central role they play in machine…

Quantum Physics · Physics 2019-09-09 Jonathan Allcock , Chang-Yu Hsieh , Iordanis Kerenidis , Shengyu Zhang

The integration of Quantum Deep Learning (QDL) techniques into the landscape of financial risk analysis presents a promising avenue for innovation. This study introduces a framework for credit risk assessment in the banking sector,…

Computational Finance · Quantitative Finance 2025-02-13 Rath Minati , Date Hema

This paper investigates the efficacy of quantum computing in two distinct machine learning tasks: feature selection for credit risk assessment and image classification for handwritten digit recognition. For the first task, we address the…

Quantum Physics · Physics 2025-11-05 JiaNing Long , Xuechen Liang

Quantum computers progress toward outperforming classical supercomputers, but quantum errors remain their primary obstacle. The key to overcoming errors on near-term devices has emerged through the field of quantum error mitigation,…

Quantum Physics · Physics 2025-05-14 Haoran Liao , Derek S. Wang , Iskandar Sitdikov , Ciro Salcedo , Alireza Seif , Zlatko K. Minev

Quantum computing (QC) and machine learning (ML), taken individually or combined into quantum-assisted ML (QML), are ascending computing paradigms whose calculations come with huge potential for speedup, increase in precision, and resource…

We present a quantum algorithm that analyzes risk more efficiently than Monte Carlo simulations traditionally used on classical computers. We employ quantum amplitude estimation to evaluate risk measures such as Value at Risk and…

Quantum Physics · Physics 2019-10-31 Stefan Woerner , Daniel J. Egger

Recovery rate prediction plays a pivotal role in bond investment strategies by enhancing risk assessment, optimizing portfolio allocation, improving pricing accuracy, and supporting effective credit risk management. However, accurate…

Computational Finance · Quantitative Finance 2026-01-27 Ying Chen , Paul Griffin , Paolo Recchia , Lei Zhou , Hongrui Zhang