Quantum-Driven Finance Transforming Banking Through Next-Generation Technologies
description: The swift progress of quantum computing is set to revolutionize the financial sector, especially in the fields of risk management and portfolio optimization. Existing financial models, though effective in some measure, are unable to handle the huge complexities of today's markets, where high-frequency trading, nonlinear interdependencies, and complex risk factors require advanced computational capabilities. Quantum finance, a new multidisciplinary research area, uses quantum computing concepts to improve financial decision-making, investment strategy optimization, and risk reduction more effectively than traditional techniques. This chapter discusses how quantum computing is revolutionizing risk management and portfolio optimization using quantum mechanics-based algorithms like quantum annealing, quantum Monte Carlo simulations, and variational quantum eigensolvers (VQEs). These methods enable financial institutions to resolve high-dimensional optimization problems exponentially quicker, detect more optimal risk-adjusted portfolios, and build predictive models with higher accuracy. 2026 by IGI Global Scientific Publishing. All rights reserved.
creator: Mary, Hannah; Rajendran, Rajesh Kanna; Das, Deepthi; Sakkaravarthi, R.
source: Quantum-Driven Financial Intelligence: Innovations in Predictive Analytics and Autonomous Trading Systems;pp.253-273
publisher: IGI Global
date: 01-01-2025
rights: Restricted Access; Hardcopy may be available in the library
relation: ISBN: 979-833732895-9; 979-833732893-5;
language: English
type: Book chapter
coverage: Mary H., Christ University, India; Rajendran R.K., Department of Computer Science, CHRIST (Deemed to be University), Department of Information Technology, N.G.P Arts & Science College (Autonomous), Bangalore, Coimbatore, India; Das D., Christ University, India; Sakkaravarthi R., Vanier College, Canada