The Financial Conduct Authority is to establish a new industry group to explore how quantum computing could be used to detect financial crime, initially focusing on money laundering and fraud.

The Quantum Experimentation Group, which the regulator describes as the first initiative of its kind by a financial regulator, will bring together financial services firms, quantum technology providers and national research laboratories. It is due to launch in the first quarter of 2027.

Participants will use a synthetic dataset developed by the FCA to test potential applications of quantum machine learning. The artificially generated data is intended to overcome one of the main barriers to experimentation: access to suitable information for testing new technologies.

The group will examine practical applications of quantum computing in financial services, with findings shared to inform further research and development. It will also help the FCA assess the technology’s capabilities and limitations, the barriers to adoption and the potential implications for financial regulation.

Jessica Rusu, chief data, information and intelligence officer at the FCA, said: “We want to help firms explore where quantum could make a meaningful difference, and early experimentation is essential to understanding its potential in financial services. By bringing together firms, technology providers and researchers we can build readiness and identify practical applications for common industry challenges, starting with financial crime.”

The initiative follows the FCA’s earlier research into the potential applications of quantum computing in financial services. Financial services firms, quantum technology providers and national research laboratories interested in joining the group have until 31 December 2026 to register their interest.

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