IBM and HSBC: Proving Quantum Computing Commercial Viability

IBM quantum processors have achieved the first documented performance advantage over classical computers in a commercial application. Working with HSBC, IBM delivered 34% better algorithmic accuracy using quantum methods compared with conventional computing approaches on complex optimisation problems.

The partnership used production trading data across multiple IBM quantum systems, demonstrating how current quantum hardware can outperform classical alternatives in specific computational scenarios and marking quantum computing’s transition from experimental research into real business environments.

IBM Heron processors excel at multi-variable optimisation

According to the companies, IBM’s processors demonstrated superior performance handling interconnected data streams that create processing bottlenecks for traditional algorithms.

“This is a ground-breaking world-first in bond trading,” Philip Intallura, HSBC Group Head of Quantum Technologies. “It means we now have a tangible example of how today’s quantum computers could solve a real-world business problem at scale and offer a competitive edge, which will only continue to grow as quantum computers advance.”

HSBC processes thousands of bond trading requests daily across European markets, with each transaction potentially worth millions of pounds. The bank’s algorithmic systems must compete against other financial institutions in automated bidding processes where pricing accuracy directly impacts profitability.

The bank prioritised immediate quantum applications over theoretical future capabilities. Philip explains that HSBC has been “relentlessly focused on the near-term application of quantum technology”.

He says: “Given the trial delivered positive results on current quantum computing hardware, we have great confidence we are on the cusp of a new frontier of computing in financial services, rather than something that is far away in the future.”

The quantum processors excelled at processing multiple variables simultaneously while generating predictions under uncertainty conditions. These computational challenges represent the type of problems quantum architecture was specifically designed to address.

Quantum-classical hybrid architecture delivers computational gains

IBM’s Heron processor spotted patterns in data that classical systems missed entirely. The quantum chip accessed computational spaces beyond traditional processing, delivering measurable performance improvements.

The Heron processor features 133 physical qubits arranged in a heavy-hex lattice topology, designed to minimise quantum errors while maximising computational connectivity. Unlike classical bits that exist in definitive states of 0 or 1, qubits can exist in quantum superposition, allowing them to represent multiple possibilities simultaneously until measured.

The collaboration tested quantum methods on complex probability calculations with multiple interactive variables. These statistical challenges require processing vast amounts of interdependent data: perfect for quantum computing.

“This exciting exploration shows what becomes possible when deep domain expertise is integrated with cutting-edge algorithm research and the strengths of classical approaches are combined with the rich computational space offered by quantum computers,” says Jay Gambetta, Vice President IBM Quantum.

IBM used a hybrid approach: quantum and classical systems working together rather than quantum replacing everything. This strategy works within current hardware limits while leveraging quantum advantages.

Quantum mechanics principles enable expanded processing capabilities

Quantum computing uses quantum physics to process information in ways conventional computers cannot. This lets quantum machines solve problems that overwhelm traditional supercomputers.

The research tackled algorithmic complexity where numerous variables interact simultaneously. Problems requiring analysis of interconnected factors suit quantum processing perfectly.

IBM offers quantum computing through cloud services via Qiskit, its open-source development platform. This means developers can build quantum applications without buying quantum hardware.

Qiskit includes quantum circuit design tools, optimisation libraries, and simulation capabilities that allow developers to test quantum algorithms before running them on actual quantum hardware. The platform supports multiple programming languages and integrates with classical computing frameworks, enabling hybrid application development.

Heron is IBM’s latest quantum processor, with better qubit stability and fewer errors than previous generations. These improvements make quantum computations more reliable for commercial use.

Quantum processors work best on complex optimisation, machine learning and cryptographic problems where classical computers struggle. These applications span logistics, manufacturing, pharmaceuticals and cybersecurity.

“Such work is essential to unlock new algorithms and applications that are poised to transform industries as quantum computers scale, and the future of computing takes shape,” Jay says.