Since 1865, HSBC has made trust its core value. This focus now drives its efforts to secure digital trust as quantum computing and artificial intelligence (AI) transform the industry.

“Technologies like AI and quantum are already reshaping the financial services landscape. Today, AI is helping banks enhance operational efficiency, develop customer-centric products and improve customer experience. Similarly, quantum technologies are transforming the cybersecurity landscape. Ultimately, banking is about trust and hence empathy and human judgment remain essential,” says Wong Kee Joo, CEO of HSBC Singapore.

Yet even as banks harness these technologies, they must contend with the new vulnerabilities they create. Experts warn that quantum computers could eventually break current encryption, putting systems from interbank transfers to national payments at risk. Most forecasts expect this to occur within five to 10 years, or sooner if research advances accelerate.

To stay ahead of this risk, HSBC participated in a Monetary Authority of Singapore (MAS) led proof-of-concept (PoC) sandbox in collaboration with SPTel, SpeQtral and local banks in August 2024 to evaluate the use of quantum key distribution (QKD) in financial services. The pilot explored how QKD could secure sensitive transactions by exchanging encryption keys over the Infocomm Media Development Authority’s National Quantum-Safe Network Plus.

Completed in September 2025, the PoC provided valuable lessons. HSBC is now drawing on industry guidance such as Singapore’s Cyber Security Agency’s Quantum-Safe Handbook and Quantum Readiness Index to inform its own quantum-safe migration planning. 

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“We’re building our cryptographic inventory to map vulnerabilities before drawing up a roadmap to make our key systems quantum-safe,” says Tancy Tan, chief operating officer at HSBC Singapore. She adds that quantum safety is essential to protecting the trust dividend the bank has compounded for more than a century.

The value of collaboration 

A technical report on the QKD sandbox by MAS and industry participants highlighted that continued collaboration between banks, QKD providers, telecom operators and regulators is crucial to building robust standards and secure quantum-safe frameworks. The findings support HSBC’s view that quantum readiness cannot be achieved in isolation. This extends to the bank’s broader approach to emerging technology, which focuses on collaboration over competition. 

“Financial services operate as an ecosystem. We collaborate more than we compete, especially when it comes to technology,” Tan explains. She points to real-time payments and anti-scam initiatives as examples of how banks collaborate to address common challenges. “Ultimately, financial services are interrelated. In the area of quantum, that collaboration becomes even more evident.”

Driven by this belief, HSBC launched its Singapore Quantum Centre of Excellence (CoE) in September, marking its second globally, following the UK. The centre will initially focus on quantum-safe security, including post-quantum cryptography, quantum key distribution, and hybrid cryptographic frameworks. Over time, it will also explore how quantum computing can enhance financial modelling, risk management and machine learning.

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The Singapore Quantum CoE is more than a research lab. HSBC has signed memoranda of understanding with local universities and quantum providers, positioning the facility as a platform for industry-wide collaboration.

HSBC’s collaborative approach extends beyond quantum technology. The bank also participates in MAS initiatives aimed at promoting the safe and effective use of AI in finance. For instance, Project MindForge brings together banks and technology partners to develop risk frameworks for responsible use of generative AI, while PathFin.ai curates peer-validated use cases to help financial institutions accelerate adoption. Such initiatives underscore HSBC’s view that collaboration across the ecosystem is key to turning emerging technologies into lasting value.

 

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The balance game

Rather than seeking quick returns on nascent technology, HSBC balances near-term results with long-term readiness.

This is exemplified by its dual-track quantum strategy. The first focuses on practical gains today, using quantum-inspired algorithms that run on classical hardware. In a trial with IBM, HSBC achieved a 34% improvement in predicting trade-fill probability for algorithmic bond trading compared to traditional methods. The project demonstrated that quantum techniques can enhance complex market modelling while building internal expertise for the future.

The second track looks further ahead at leveraging the quantum infrastructure when the hardware matures. HSBC’s work in the MAS QKD sandbox reflects that long-term commitment, laying the foundation for quantum-secure communications and computational finance.

Wong shares that HSBC views technology as a force that empowers human expertise, which is vital to meeting customer needs and sustaining trusted relationships. “By combining advanced digital tools like quantum and AI with our people’s expertise, we can understand our customers on a deeper basis, anticipate their needs, keep them safe, and deliver stronger outcomes for them,” he adds. 

The bank’s people-centred approach to technology is evident in its extensive adoption of AI. It encompasses over 600 AI use cases to enhance efficiency, resilience and customer experience. 

In private banking, HSBC recently launched Wealth Intelligence, a generative AI platform built on OpenAI’s large language model. It enables relationship managers and investment counsellors to deliver faster, data-driven insights and personalised investment strategies. Initially rolled out in Hong Kong and Singapore, the system analyses over 10,000 data sources and will expand globally. Importantly, it complements human advisers, reinforcing the bank’s belief that technology should empower people, not displace them.

Ultimately, the value of technology lies in the problems it addresses.

When we look at a use case right now, we don’t apply the lens of whether it is for AI or quantum. We solve it as a complex computational problem. 
Tancy Tan, chief operating officer, HSBC Singapore

Tancy Tan, chief operating officer at HSBC Singapore

Trust as collective infrastructure

Being prepared for emerging technology is essential to preserving customer trust, but in an interconnected financial system, preparation cannot be a solo effort. When quantum computers eventually break current encryption, they will not discriminate between banks — the threat affects the entire financial ecosystem. Quantum-proofing those standards requires industry-wide coordination instead of isolated defences. The same holds true for AI and other emerging technologies that are reshaping the finance industry.

“To have a trusted financial system, ecosystem partnerships are a powerful means for banks, technology partners and government to collaborate to solve issues from multiple angles and to balance innovation with safeguards, ensuring risks are always assessed alongside potential benefits,” says Wong. Examples of that approach include HSBC’s collaboration with MAS and the wider industry on the Veritas programme and Project MindForge, where the bank is co-creating responsible AI frameworks and toolkits for the financial sector.

People development, adds Wong, is also key. “It is important that we continue to upskill our workforce and build capabilities in AI and quantum across the industry through programmes such as the Financial Sector Artificial Intelligence and Data Analytics (AIDA) Talent Development programme launched by MAS,” he says.

For HSBC, that future is already taking shape. From quantum-safe encryption trials to responsible AI adoption, the bank’s strategy shows how collaboration can turn technological disruption into a foundation for resilience. After 160 years, HSBC continues to treat trust not as a legacy, but as an infrastructure that is shared, evolving, and essential to the future of global finance.