For banks, quantum computing is both a threat to security and a chance to build resilience - The World Economic Forum

Banks can unlock more innovation and resilience through quantum computing. Image: Shutterstock/PavelIgnatovThe foundations of global finance are shifting. For years, the industry has operated under the assumption that the mathematical walls protecting the data banks hold are impenetrable. That assumption is now expiring.Quantum computing harness the principles of quantum physics to solve complex problems much faster than traditional computers. While this breakthrough technology is expected to revolutionize science, technology, it could also be used to break the public-key encryption methods that protect financial transactions, communications and sensitive data. This creates a grave systemic risk because encrypted information collected over time could be stored and decrypted once powerful and advanced quantum computers become available.Financial regulators around the world are already discussing and planning how institutions should prepare for quantum computing. In July 2025, the Bank for International Settlements published a quantum-readiness roadmap for the financial system. The UK’s National Cyber Security Centre has also established a comprehensive migration timeline to help organizations transition by 2035.But the same technology that could obliterate current security standards is also powerful enough to create significant value for the banking sector. Quantum computing is already enabling breakthroughs in risk modeling, fraud detection and hyper-personalized financial products. McKinsey estimates it could unlock up to $600 billion for financial firms by 2035, giving early adopters a significant competitive advantage.For financial firms, quantum readiness is now a necessity.Adversaries are already engaged in "harvest-now, decrypt-later" attacks. They are intercepting and storing encrypted, sensitive data – intellectual property, long-term financial contracts, sovereign communications – with the intent of unlocking it the moment a cryptographically relevant quantum computer (CRQC) becomes available.If an organization’s data has a shelf life of 10 years or more, it may already be exposed. Experts now predict that RSA-2048 encryption – the backbone of nearly all internet trust – will be broken by 2030. Although the precise timeline remains uncertain, the accelerating pace of quantum computing progress means organizations should plan to migrate critical, long-lived and sensitive data now.The US National Institute of Standards and Technology's (NIST) release of post-quantum cryptography (PQC) standards in August 2024 was a starter’s pistol. These new encryption methods are designed to resist quantum attacks and mark the beginning of a mandatory transition for financial organizations to upgrade their security systems to remain resilient in a quantum era.But quantum computing can also offer banks a competitive edge. Early movers are already taking action in various ways. In risk transformation, for example, Turkish bank Yapı Kredi recently used quantum computing to solve a risk analysis problem in seven seconds that would have previously taken years. Financial firm Intesa Sanpaolo is utilizing quantum machine learning to identify complex fraudulent patterns that classical AI misses, significantly reducing false positives.And by 2035, quantum-enhanced simulations will allow financial institutions to construct millions of personalized asset combinations in seconds. They will be able to offer credit and investment options tailored to a user’s biometric profile and real-time cash flow needs.And so banks shouldn't just aim to be "quantum safe", but "quantum enhanced".Technical hardware is only half the battle, quantum literacy is also a bottleneck. To address this, banks need a three-pronged strategy:Rather than building rigid security architectures, the goal should be to create systems where cryptographic algorithms can be swapped out like software plug-ins. This agility will ensure that, as mathematical threats evolve, defenses can be updated without ripping out the core infrastructure.A lack of skilled quantum computing talent is a serious concern. Banks will need domain experts who can understand and connect quantum technology across risk, cybersecurity and compliance – not just specialist physicists and researchers. Partnerships with academia and the technology sector will help develop such quantum-literate talent.Hybrid models, in which quantum algorithms handle specific optimization segments while traditional systems handle the heavy lifting, are now ready for deployment in areas of finance like collateral optimization and liquidity netting.In an industry where speed and security are crucial, waiting for technology to mature is a high-stakes gamble. Meanwhile, insurers are still figuring out how to measure and underwrite the risks associated with quantum technology. Conventional models may not adequately represent exposures due to a lack of historical data and the possibility of connected losses across industriesBut this challenge also presents a crucial opportunity to reimagine the risk framework. This could drive innovation to help the industry address uncertainty and enable the adoption of next-generation technologies such as quantum computing.The transition begins today. Those who can secure the past and present while innovating for the future will own the next era of global finance. Those who wait may find they have nothing left to protect.Create a free account and access your personalized content collection with our latest publications and analyses.License and RepublishingWorld Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.The views expressed in this article are those of the author alone and not the World Economic Forum.Bringing you weekly curated insights and analysis on the global issues that matter.What is a leap second – and why is it being abandoned?Andrea WilligeSeptember 10, 2026What must change to unlock investment in critical minerals? 4 experts respondBond sell-off: Why government bond yields soared and why it mattersAs scarcity reshapes markets, here's where long-term investors can find valueWildfires and the rising cost of climate risk, and other finance news to knowWhich nature investments pay off? 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