（Singapore, 27.04.2026）Global banks are taking sharply different paths in the race to harness quantum computing, a powerful but still developing technology that many believe could reshape finance in the years ahead.
According to a report by Bloomberg, the divide is increasingly visible between major players on Wall Street. On one side is Goldman Sachs, which has scaled back its efforts after early research suggested that practical applications remain far out of reach. On the other is JPMorgan Chase, which continues to invest heavily, betting that early preparation will pay off when the technology eventually matures.
The contrast reflects a broader uncertainty across the financial industry. Quantum computing holds enormous promise, but meaningful commercial use may still be years, or even decades, away.
A Growing Split in Strategy
About three years ago, Goldman Sachs appeared to be ahead in the quantum race. The bank assembled a team of specialized researchers and collaborated with Amazon to explore how quantum systems could improve investment returns.
But the findings were sobering.
Researchers discovered that solving certain financial problems would require running algorithms for millions of years on today’s machines. Even more daunting, the task would need quantum processors with around 8 million logical qubits, far beyond current capabilities, which remain below 100 qubits.
Faced with this gap, Goldman eventually disbanded most of its quantum team as part of broader cost cutting measures. Today, it has minimal involvement in the field.
In contrast, JPMorgan has continued to push forward. The bank employs a team of more than 50 experts, including physicists, mathematicians and computer scientists, focused on exploring how quantum computing could improve areas such as portfolio optimization, fraud detection and cryptography.
Recent experiments suggest some early progress. JPMorgan has tested ways to analyze large datasets more efficiently using quantum processors developed by Quantinuum. It has also worked with Amazon on algorithms that could help investors build more diversified portfolios.
While these advances remain experimental, JPMorgan believes they could eventually translate into real world benefits. The bank expects that useful quantum applications could begin emerging within the next few years, although it acknowledges that current hardware remains a major limitation.
This divergence between two of the world’s largest banks reflects a wider split across the industry. Some institutions are investing early in the hope of gaining a future edge, while others are stepping back until technology becomes more practical.
Big Promise, Long Road Ahead
Quantum computing is based on the principles of quantum mechanics, allowing machines to process many calculations simultaneously rather than step by step. In theory, this could make them vastly more powerful than today’s supercomputers.
Consulting firm McKinsey & Company estimates that the quantum industry could grow from about $4 billion (S$5.09 billion) in 2024 to as much as $72 billion (S$91.68 billion) by 2035.
But for now, practical use cases remain limited, especially in finance. Unlike industries such as pharmaceuticals or materials science, where applications are clearer, financial firms face a wide range of complex problems, from risk modeling to fraud detection. This makes it harder to identify where quantum computing can deliver immediate value.
As a result, many banks are taking a wait and see approach. UBS is training its analysts in quantum basics, while BBVA and Crédit Agricole are experimenting with specific use cases such as portfolio optimization and credit analysis.
At the same time, financial institutions are preparing for potential risks. One major concern is that powerful quantum computers could eventually break current encryption systems, prompting banks to upgrade their cybersecurity defenses.
For now, most of the progress is being driven by technology companies. Firms like Google and IBM are building quantum hardware and software, while offering cloud-based access to early-stage systems.
Other industries are already experimenting with practical applications. For example, BMW is studying how quantum tools could improve vehicle design, and Exxon Mobil is exploring more efficient shipping routes.
The gap between expectations and reality has also become more apparent over time. Early breakthroughs, such as Google’s 2019 announcement that its quantum computer solved a task in minutes that would take a classical supercomputer thousands of years, sparked widespread excitement across Wall Street.
But some experts now say the industry is moving too quickly. Companies like Rigetti Computing and QC Ware note that early enthusiasm was partly driven by hype, with financial institutions investing before the technology was ready.
Today, that excitement has cooled, replaced by a more measured and practical approach.
Despite the challenges, few believe quantum computing will fade away. HSBC, for instance, has reported improvements in bond price forecasting using quantum processors developed by IBM, though the results remain limited and not fully understood.
Looking ahead, quantum computing is expected to play a larger role in areas such as trading, risk management and cybersecurity. For now, however, it remains largely in the experimental stage, with most applications still confined to research and pilot projects.
The contrast between Goldman Sachs pulling back and JPMorgan Chase pressing ahead underscores a key question for Wall Street: how much to invest today in technology that may take years to generate meaningful returns.
For most institutions, the answer lies in balancing long-term ambition with near term discipline. With technology still evolving, banks are pacing their investments carefully, maintaining exposure while waiting for clearer evidence of commercial viability.
