Swiss fintech startups drive innovation in the banking sector

A Mckinsey report predicts that quantum computing may bring significant value to the financial services industry, with an estimated potential to create around $700 Bn. As quantum technology evolves, early adopters like HSBC are poised to explore the potential benefits of increased efficiency, cost reduction, and a competitive edge. As one of the largest banking and financial services institutions in the world, serving millions of customers through its three Global Businesses, HSBC is partnering with Swiss startup Terra Quantum, provider of a unique portfolio of hybrid quantum algorithms and solvers, allowing customers to get business advantage from the power of hybrid quantum today. They will explore Hybrid Quantum technologies applications on optimization challenges for business impact. Optimization is a crucial function for a bank's healthy operation. With this collaboration HSBC and Terra Quantum are leading the race to develop revolutionary quantum capabilities in the financial sector.

The project's objective is to demonstrate the potential for a hybrid quantum solution for optimization challenges, a widespread and highly complex suite of issues in financial services. One example of such an issue is collateral optimization. Collateral optimization is the process of efficiently allocating and managing collateral assets to meet regulatory requirements while minimizing costs. It utilizes mathematical and algorithmic strategies to balance risks, liquidity, and profitability. Existing methods for collateral optimization primarily rely on linear optimization solvers, which can sometimes falter when confronted with higher complexities. The quantum approach could potentially excel beyond traditional methodologies, by effectively handling high-dimensional optimization problems and potentially better scalability.

Terra Quantum is already working with numerous enterprise customers including other financial institutions and hedge funds. In July 2023, the company announced its collaboration with Cirdan Capital, a London-based investment bank. Under the business partnership, Terra Quantum will assist Cirdan Capital with data-driven option pricing, revealed the company to Startupticker. 

Taurus attracts Deutsche Bank as customer
Deutsche Bank, one of the world’s leading financial services providers is also betting on Swiss innovation. The company has entered a global partnership with Taurus, a major digital asset technology provider, to establish digital asset custody and tokenization services. Founded in 2018, Taurus provides enterprise-grade digital asset infrastructure to issue, custody, and trade digital assets, such as cryptocurrencies, tokenized assets, NFTs, and digital currencies. As such, this partnership is a natural extension of recent Deutsche Bank’s digital asset focused initiatives.

“This partnership is the result of a thorough and detailed selection and due diligence process where Taurus was able to demonstrate the quality and breadth of its products and technology,” said Taurus co-founder Lamine Brahimi. “We are pleased to implement this global partnership with Deutsche Bank and look forward to supporting the bank in launching digital assets and DLT-based products and services across several booking centers.”

Earlier this year, Deutsche Bank also participated in Taurus’ $65 million Series B funding round alongside Credit Suisse, Pictet Group, and Arab Bank Switzerland.

(Press release/RAN)