The Financial Conduct Authority (FCA) is looking at whether quantum computing could help banks and other financial firms detect money laundering and fraud more effectively.
Announced on 5 November 2026, the new FCA quantum computing initiative will see the launch of a Quantum Experimentation Group (QEG) in early 2027. The group will bring together financial firms, technology specialists and researchers to test how quantum machine learning could be used to tackle financial crime.
It’s still early days for the technology, but the FCA wants to find out whether it could offer something that current systems cannot.
How will the FCA’s quantum computing group work?
The initial focus will be on money laundering and fraud detection. Participants will test different approaches to analysing financial data, looking at whether quantum technology can identify suspicious patterns more effectively than existing methods.
The FCA will provide synthetic data for the experiments. This means firms can test the technology using information created for that purpose, rather than real customer records.
Using the same data will allow participants to compare quantum-based approaches with existing computing methods and assess whether they offer any advantages.
The group will give the FCA a chance to learn more about the practical challenges involved, from the technology itself to the skills and resources firms might need.
Why does this matter for payment and e-money firms?
Payment and e-money firms already rely on transaction monitoring systems to help identify unusual activity and potential financial crime.
As payment volumes grow and fraud methods change, firms need to make sure their systems can keep up.
Quantum computing may eventually help with this. For example, researchers could explore whether quantum-based methods can help identify suspicious activity that existing detection systems might miss.
But there are still questions about what the technology can deliver in practice. That’s what the FCA wants to explore.
For now, there’s no change to firms’ regulatory obligations. Payment and e-money institutions still need to maintain effective AML controls, monitor transactions and review their arrangements as risks change.
The FCA quantum computing initiative is worth following, particularly for firms looking at how technology could improve their financial crime controls in the future.
How can firms get involved?
The FCA is inviting financial services firms, quantum technology providers and research organisations to register their interest in joining the Quantum Experimentation Group.
Those interested have until 31 December 2026 to register their interest, with the group expected to begin its work in the first quarter of 2027.
Further details are available on the FCA’s Quantum Experimentation Group page.
