Standard Chartered is taking unprecedented steps to safeguard customer data against the impending threat of quantum computing, positioning itself as a pioneer in digital security beyond the current AI hype cycle. The bank is actively addressing future digital security challenges, recognising quantum computing as the “next major technological shift”.
Experts warn that a significant quantum attack could compromise bank accounts and customer data globally, representing a new quantum vulnerability that demands immediate attention, distinct from traditional cyber threats.
Recognising this critical need, Standard Chartered is proactively moving into the quantum computing ecosystem, viewing this as fundamental for protecting data, communities, and individuals. The bank’s approach sets it apart from other financial institutions. While many merely invest, Standard Chartered is unique in its active role of “building within the quantum space”. This hands-on involvement enables them to directly learn and absorb crucial quantum knowledge, directly supporting their overarching goal to protect customer information.
To achieve this, Standard Chartered is forging strategic partnerships with market leaders, co-investing in joint ventures designed to construct these vital protections. This strategy is designed to allow financial services to integrate closely with the quantum ecosystem.
The bank applies a rigorous investment model to these ventures, utilising startup ecosystem Key Performance Indicators (KPIs):
- Viability
- Desirability
- Feasibility
Projects must demonstrate these qualities within 12 months to secure continued investment; otherwise, the bank swiftly disengages. This proactive and decisive stance on quantum security was highlighted in a recent Background Briefing. Through these cross-industry partnerships, new companies and startups are also emerging.
Standard Chartered’s efforts can be likened to building a next-generation, unbreachable vault long before the arrival of the most advanced safe-cracking technology. They are not just waiting for the storm, but are actively constructing the ark.
5W1H summary
| Category | Description |
|---|---|
| Who | 1. Standard Chartered 2. Market leaders, other partners 3. Customers, new startups |
| What | 1. Addressing quantum computing threats 2. Protecting data, communities, individuals 3. Building within quantum space |
| When | 1. Post AI hype cycle 2. Quantum threat could be tomorrow 3. KPIs assessed within 12 months |
| Where | 1. Global banking context 2. Quantum computing ecosystem 3. Cross-industry partnerships |
| Why | 1. To protect bank data 2. Respond to quantum threat 3. AI valuations increased |
| How | 1. Partnering with market leaders 2. Co-investing in joint ventures 3. Applying startup ecosystem KPIs |
Frequently Asked Questions
Why is there a shift in focus from AI to quantum computing?
The initial hype surrounding AI is subsiding, and valuations within the AI ecosystem have significantly increased. Standard Chartered believes that quantum computing is the “next big thing” and presents a more pressing and fundamental challenge, particularly in the realm of data security.
What is the primary “quantum threat” that Standard Chartered is addressing?
Standard Chartered envisions a scenario where a “quantum threat” could lead to widespread hacking of banks, accounts, and personal data globally. This threat isn’t a traditional cyberattack but a new form of vulnerability enabled by quantum advancements, necessitating a proactive approach to data and community protection.
How is Standard Chartered engaging with the quantum computing ecosystem?
Standard Chartered is primarily partnering with market leaders in the quantum computing space by co-investing in joint ventures. They recognise they won’t be building quantum computers themselves but aim to integrate financial services more closely with this evolving technology by collaborating with leading companies.
What are the benefits of Standard Chartered’s partnership approach to quantum computing?
This approach allows Standard Chartered to leverage the expertise of established market leaders. Furthermore, by co-investing, they are able to foster the creation of new companies and startups within the quantum computing sector, contributing to the broader development of the ecosystem.
How does Standard Chartered’s approach to quantum computing differentiate it from other financial institutions?
While many banks and financial institutions are investing in quantum computing, Standard Chartered claims to be the only one “building the space.” This suggests a more active role beyond mere investment, implying a focus on learning, absorbing knowledge, and developing practical applications to protect information.
What are the key performance indicators (KPIs) for Standard Chartered’s quantum computing investments?
Standard Chartered evaluates its quantum computing investments based on three core KPIs, similar to those used in the startup ecosystem: viability, desirability, and feasibility.
What is the timeframe for evaluating these quantum computing investments?
The performance of these investments and partnerships will be assessed within the next 12 months.
What is Standard Chartered’s strategy if an investment doesn’t meet its KPIs?
If an investment in a quantum computing startup does not demonstrate viability, desirability, and feasibility within 12 months, Standard Chartered will “disengage and kill them quite quickly,” indicating a lean and results-oriented approach.
Background Briefing Transcript:
We are obviously going past the initial hype cycle and disengaging from the AI ecosystem. We believe the valuations have increased significantly and we believe the next thing that is coming along the line is quantum computing. Let me paint you a picture. You wake up tomorrow morning and your bank and your account and your data has been completely hacked. You are freaking out. You do not know what to do. You realize all banks around the world have faced a similar problem. It is not because of a cyber threat, but it is because of a quantum threat. Therefore, we believe it is imperative for us to move into the quantum computing ecosystem because this is going to become fundamental for the way we protect data, the way we protect communities and the way we protect you.
What actually is Standard Chartered doing in order to build these protections?
We are essentially moving into partnering with some of the market leaders by co-investing into joint ventures. We are doing this because we understand that we would not be the ones building quantum computers, but there are ample companies that are leading the space and the market in this context. In order for us to bring financial services closer to that ecosystem, we need to find the best partners to be able to do that. We also recognize that by doing this, we are able to give rise to new companies and new startups that we were not able to do before. That is what we are doing, investing with other partners in completely different industries on a cross-industry basis.
What is Standard Chartered doing differently from others?
To the extent that I am aware, a lot of other banks and financial institutions are investing in the space. We are the only ones building the space and that is what I believe differentiates us from the pack because we not just invest but we also build and learn and absorb accordingly and protect your information.
Along those lines, what are the KPIs that you would have to bring to such investments and partnerships?
KPIs are similar to what we would say in the startup ecosystem. Is it viable, is it desirable and is it feasible? If you can demonstrate this in the next 12 months, then we will continue investing in these startups that we are creating. If it is not, we would disengage and kill them quickly.