Why is traditional financial rating agency Moody's launching quantum computing services?

The top three credit rating agency in the United States, Moody's, is set to launch a quantum computing service platform — Quantum for Finance. They believe that the financial industry is well-suited for quantum computing implementation to optimize resource allocation.

Quantum for Finance: A Quantum Computing Platform

Financial Institutions Launch Quantum Computing Services?

According to Moody's Analytics website, Quantum for Finance is a SaaS product that offers quantum computing solutions for financial institutions.

Moody's has partnered with Multiverse Computing to provide users with Annealing quantum processors through their technology, assisting financial industry players with optimization problems such as investment portfolio allocation, quantitative trading backtesting, risk calculations, and pricing variation analysis.

Quantum for Finance offers APIs and SDKs for easy integration into clients' businesses without the need to bear the cost of hardware maintenance.

Quantum Annealing Architecture

According to an interview with senior executives of Multiverse Computing in a press release, Quantum for Finance integrates AWS GPU chips and quantum annealing processors. Therefore, the service currently only provides optimal solutions for specific problems rather than the general-purpose quantum computers that major tech giants are striving to develop, although the latter remains the long-term goal for Quantum for Finance.

Finance Sector to Embrace Quantum Computing Early

Moody's Analytics believes that the finance sector may be one of the earliest industries to benefit from quantum computing. Due to the industry's numerous use cases requiring vast amounts of data and complex calculations, traditional computing these problems consumes substantial time, space, and resources.

However, with adjustments, some of these problems could potentially be efficiently computed using quantum algorithms, enabling decision-makers to make faster decisions and gain new advantages.

Quantum Computing + Finance = Broad Market

Currently, major cloud computing companies such as Google Cloud, Amazon AWS, Microsoft Azure, and others have already introduced quantum computer cloud computing services. On the other hand, quantum annealing computation has been commercialized in fields like pharmaceuticals and chemistry. Moody's launch of this service is not technologically novel.

It can be predicted that other competitors will likely adopt similar strategies in the future, and the digitized finance sector may lead to wider adoption of quantum computing.