S P E C I A L I S T I N S I G H T
S P E C I A L I S T I N S I G H T
Ali El Hamidi , Deputy Head of the Capital Market Funding Department at Crédit Agricole CIB , shares his insights into the bank ’ s collaboration with Pasqal – a leading Quantum Computing company specialising in neutral atom-based technology . Together , they are exploring the transformative potential of Quantum Computing to tackle complex financial challenges , optimise operations and secure Crédit Agricole CIB ’ s position as a pioneer in financial innovation . challenges drive the bank ’ s exploration of advanced technologies like Quantum Computing to enhance efficiency and maintain its competitive edge .
Complex calculations require powerful computers
His team ’ s journey into Quantum Computing began in 2019 with a strategic evaluation of this nascent technology ’ s potential impact on financial markets and institutions . The team dedicated significant time to understanding the Quantum Computing ecosystem , including hardware and software developments , as well as the academic landscape offering the requisite skills for leveraging this technology . This preparatory phase was crucial for grasping the fundamental shifts that Quantum Computing could bring to banking computational challenges .
s the deputy head of the Capital Market Funding department at Crédit Agricole CIB ,
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I have been an early advocate for advanced computing solutions in financial services . My engineering and computer science background , combined with financial expertise , has uniquely positioned me to integrate cutting-edge technology with financial operations . Driven by the need for better computing solutions , I established a Quantum Group composed of members from various departments like R & D , quantitative engineering and IT , motivated to develop their quantum technology skills alongside their regular duties .
Crédit Agricole Corporate and Investment Bank has a strong global footprint with over 8,900 employees in key regions including Europe , the Americas , Asia-Pacific and the Middle East . Crédit Agricole Group ’ s corporate and investment banking arm , Crédit Agricole CIB , offers its large corporate and institutional clients a range of products and services in capital markets activities , investment banking , structured finance , commercial banking and international trade , most of which demand significant computing power to manage and analyse substantial financial data effectively .
Crédit Agricole CIB faces demanding computational needs in risk management and capital markets , where precise and fast calculations of risk metrics and pricing complex products are crucial . Regulatory mandates require extensive simulations for assessing extreme economic impacts , vital for capital requirements . In capital markets , accurate pricing is essential to stay competitive . These
The decision to explore Quantum Computing was driven by its advanced capabilities and the high stakes of ignoring transformative technology . My team highlighted the risk of severe disruption , similar to the ‘ Kodak moment ,’ where failure to adapt could obliterate market positions . This risk was too great to ignore , especially with potential impacts on the bank ’ s competitiveness . This led to the strategic partnership with Pasqal in 2021 , a significant step towards integrating Quantum Computing into some of their relevant financial practices .
Embarking on the Quantum journey with Pasqal
The partnership between Crédit Agricole CIB and Pasqal began in early 2021 , focusing on leveraging Quantum Computing to address financial sector challenges . A key project involved working with Pasqal and Multiverse to experiment with Quantum Computing ’ s potential in predicting credit rating downgrades six to 15 months in advance , aiming to assess its capability to solve real-world financial problems .
This experiment was crucial as it tackled a practical finance industry challenge . For the subject chosen , traditional computing provides satisfactory results , it often falls short in complex scenarios . The project aimed at exploring whether Quantum Computing could provide useful results for a real-world problem with existing quantum technology . The partnership also aimed to evaluate how Quantum Computing performance compares with classical computing and how it scales with increased qubits , offering insights into its practical application in finance . www . intelligentfin . tech
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