Citigroup and Quantum Computing

Goals

Add Citi Group to the existing competitive analysis of players in the quantum computing space. Specifically, identify their positioning statement, key use cases/applications, partnerships, key messages and communications tactics in relation to quantum computer.

Early Findings

Citigroup on Quantum Computing

  • Citigroup named quantum computing as one of the five tech trends to watch in 2019, as "quantum computing can help revolutionize financial services by improving trading algorithms, reducing fraud, optimizing portfolios, and managing risk."
  • Citigroup has made investments in quantum computing software companies such as 1QBit and QC Ware.
  • According to Model Omni, Citigroup has increased their research investment in quantum computing in 2020, however, it was unclear exactly how much they were spending. According to an article by Inside Quantum Technology, bank's research on quantum technology has focused on "trying to design new types of algorithms capable of being run on quantum machines. The first of these involve a class of optimization problems that take advantage of the probabilistic nature of quantum computing to analyse a large number of possible outcomes and pick the most desirable, rather than following the precise logic paths of traditional computers. The work has been focused on so-called Monte Carlo simulations, complex calculations that banks normally carry out daily to assess their overall risk positions which are the same techniques are used in options pricing."
  • According to William Hartnett, the managing director at Citigroup, the technology will transform risk assessment and trading for the financial industry and stated that "banks need to start learning how to harness it now."
  • It was not apparent from our research that Citigroup has conducted any use cases or, based on a search of their associates on LinkedIn, hired any talent specifically focused on Quantum computing, as has been the case for other large financial firms. However, the research team did identify Dan Masiowski, Managing Director at Citi, who has experience in quantum computing, even though it is not his main focus.
  • In February 2020, Citigroup again cited quantum computing as a technology to watch, stating that "Quantum computing is another subject talked about as perpetually on the horizon, but progress is accelerating here and we think that we could be close to a tipping point in technology in the near future." They shared this report on their Twitter.

Research Summary

The research team found that Citigroup, while interested in quantum computing, has taken relatively minimal action around the technology as compared with other large financial firms. The largest action Citigroup has taken has been their investments in 1QBit and QC Ware.

Proposed next steps:

You need to be the project owner to select a next step.