Classiq Company announced a new cooperation in the quantum algorithm field with the IT Services Company NTT Data. This is the first cooperation revealed publicly by Classiq, which within its framework NTT will use the Classiq’s quantum programming platform to develop designated quantum algorithms. NTT will use those algorithms to perform complex calculations in the credit risk analysis field, as part of its novel IT services it delivers to customers in the finance world.
NTT Data, part of NTT Group, is one of the largest IT Services companies in the world. According to Gartner’s ranking, NTT Data is the sixth largest IT Company, revenue-wise, with $20.3 billion revenue in FY2021. It focuses in broad areas such as digitization processes, cloud, business intelligence, business consulting and more, and it serves customer in a wide range of sectors, to include the financial one. Shunichi Amemiya, Head of Research and Development HQ, NTT Data, says: “We are interested in applying quantum computer technology to financial engineering and believe that the need to compute complex business models will increase in the future”.
Quantum risk management
Credit risk analysis is a weighing process intended to evaluate the risk that borrowers or vendors will not return a loan. The higher the risks – the higher is the interest the lender requests, or even refuse to loan. Amir Naveh, Co-Founder and Head of Algorithms in Classiq, explains to Techtime why quantum computing capabilities are required in calculating credit risk analysis. “Calculating and ranking credit risk requires weighing of many variables, the same way it’s done in financial option pricing process. Usually, an enormous number of scenarios and possibilities should be considered in order to achieve the correct evaluation. Using quantum computing, this process could be accelerated and more accurate, which – in turn – improves risk management of the financial body”.
Classiq is developing CAD solutions that will make it possible to write applications for quantum computers. Nir Minerbi, Classiq co-founder and CEO, told Techtime in an earlier interview: “The quantum revolution consists of two things: hardware and software. Nowadays it is almost impossible to develop applications for a quantum computer, since you have to program at the logic gate level. It’s like designing a chip at the transistor level. We build the tools that allow developing applications at a higher level of abstraction. The next layer in the quantum stack.”
Recently, Classiq launched its proprietary platform’s Beta version which allows, for the first time in the industry, to compose functional algorithms for Quantum computers. The company made the new platform available to several customers, and intends to expand the beta version access to several dozen customers in the next few months.