Book Image

Financial Modeling Using Quantum Computing

By : Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere
5 (1)
Book Image

Financial Modeling Using Quantum Computing

5 (1)
By: Anshul Saxena, Javier Mancilla, Iraitz Montalban, Christophe Pere

Overview of this book

Quantum computing has the potential to revolutionize the computing paradigm. By integrating quantum algorithms with artificial intelligence and machine learning, we can harness the power of qubits to deliver comprehensive and optimized solutions for intricate financial problems. This book offers step-by-step guidance on using various quantum algorithm frameworks within a Python environment, enabling you to tackle business challenges in finance. With the use of contrasting solutions from well-known Python libraries with quantum algorithms, you’ll discover the advantages of the quantum approach. Focusing on clarity, the authors expertly present complex quantum algorithms in a straightforward, yet comprehensive way. Throughout the book, you'll become adept at working with simple programs illustrating quantum computing principles. Gradually, you'll progress to more sophisticated programs and algorithms that harness the full power of quantum computing. By the end of this book, you’ll be able to design, implement and run your own quantum computing programs to turbocharge your financial modelling.
Table of Contents (16 chapters)
1
Part 1: Basic Applications of Quantum Computing in Finance
5
Part 2: Advanced Applications of Quantum Computing in Finance
10
Part 3: Upcoming Quantum Scenario

Key problems in financial services

Financial services can be categorized as banking, financial services, and insurance. Banks must manage customer expectations, maintain loan quality, and prevent customer churn, while financial market participants must regularly perform stress tests to avoid future troubles. Financial services must stay up to date with technological advancements to meet evolving client needs. Insurance companies must disburse claim amounts correctly and quickly to genuine customers, adhere to regulatory compliance, and invest in robust fraud detection and prevention measures. Overcoming these challenges requires ongoing investment in technology, staff training, and a commitment to providing high-quality services to clients.

Banking services provide depository and lending services to customers via commercial and investment banks. They must manage customers’ expectations and arrest customer churn in this dynamic environment of interest rate fluctuations. On...