Spanish bank BBVA is collaborating with Fujitsu on a proof of concept of its quantum-inspired optimisation solution.

The collaboration comes after BBVA launched a number of studies to determine how quantum technologies could represent an advantage over traditional tools in different financial use cases.

The bank wants to determine whether Fujitsu’s Digital Annealer solution could outperform traditional computing techniques in optimising asset portfolios, helping minimise risk while maximising returns, based on a decade’s worth of historical data.

The collaboration will test Digital Annealer’s ability to process complex combinatorial problems in minutes.

As part of its multi-study approach, BBVA has launched a strategy that involves forging alliances, strengthening its internal capacity around this technology, evaluating different available tools, and developing proof of concepts in collaboration with research centres, traditional businesses and startups.

In addition to portfolio optimisation, BBVA researchers are also exploring how the technology can be applied to areas such as the simulation of financial scenarios, currency arbitrage and credit scoring processes.

BBVA’s research and patents team wanted to explore how Digital Annealer could be deployed to optimise an investment portfolio by evaluating different assets based on information including historical market prices to determine the level of investment in each.

The bank also intends to use it to also identify the best possible time to buy or sell assets, to maximise portfolio value.

The project is still in an exploratory phase, but early results point to a set of advantages for the Digital Annealer in comparison to tools currently used to resolve complex problems quickly, accurately and efficiently.

Carlos Kuchkovky, BBVA global head of research and patents, explained: “The quantum technologies ecosystem is evolving very quickly and we believe that the collaboration with various partners, public and private alike, is key in order to translate the benefits of the technology into tangible progress, for the banking sector and for society at large.

“Our research is helping us identify the areas where quantum computing could represent a greater competitive advantage, once the tools have sufficiently matured," he continued, adding: "At BBVA, we believe that quantum technology will be key to solving some of the major challenges facing society this decade.”

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