FCA explores use of quantum computing to tackle financial crime

The UK’s Financial Conduct Authority (FCA) is beginning to test how quantum computing can be used to stop financial crime. While this technology sounds like science fiction, it has real-world implications for any business that offers credit or payment plans. Currently, fraud detection systems often struggle with 'false positives,' where legitimate customers are blocked from making a purchase. The FCA wants to see if quantum machine learning can identify complex patterns of money laundering and fraud much faster than today’s computers. For retailers and operators, this development signals a shift in how your lending partners will handle security. As these tools evolve, they should eventually lead to smoother checkout experiences. Better fraud detection means fewer manual reviews for high-ticket applications and a lower risk of your business being hit by fraudulent chargebacks. However, it also means that regulatory expectations for data security and 'knowing your customer' (KYC) are likely to increase. If the regulators are upgrading their tech, they will expect the lenders you work with to keep pace. Stay tuned as these pilot programs move from the lab to the point of sale.

Source: Finextra — Lending

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