SINGAPORE - OCBC Bank is working with three local universities to tap the enhanced computational power of quantum computers to strengthen real-time fraud detection and better secure data against new threats.

They are the National University of Singapore (NUS), Nanyang Technological University, Singapore (NTU Singapore) and Singapore Management University (SMU).

Under their 12-month long research collaborations inked on July 17, OCBC will also be harnessing quantum algorithms to perform derivative pricing, the process of determining the value of equity derivative products such as options, futures and swaps.

These collaborations are a step in the right direction as quantum is no longer just an exciting possibility, said the Ministry of Digital Development and Information’s chief quantum advisor David Koh.

He said that the technology will be able to solve problems that are considered impossible with traditional classical computing systems.

“For OCBC, potentially, it can optimise financial instruments,” said Mr Koh, who is also chief executive of Cyber Security Agency of Singapore.

For others, it can solve complex logistic problems, accelerate drug discovery, discover new material and enhance security against increasing cyber threats, he added.

“If we can do this well, we will have a quantum ecosystem that offers our businesses a global competitive edge in a next-generation digital hub.”

A total of $700 million has been committed to the research and development of quantum technology by Singapore authorities since 2002.

In, 2024 OCBC started training employees in quantum computing