Tradeteq to develop quantum-based credit scoring with Singapore university

Written by Ruby Hinchliffe
27th April 2020

Tradeteq, a UK-based electronic trading platform targeting the $15 trillion trade finance market, has teamed up with Singapore Management University (SMU) – the country’s third autonomous university – to develop quantum computing-based credit scoring.

Supported by the Monetary Authority of Singapore (MAS), the project aims to build a predictive machine learning model which can improve credit scoring accuracy.

The fintech’s credit scoring algorithms is used by Singapore’s Networked Trade Platform (NTP)

By being able to process multiple pieces of data at the same time, quantum computing can also, in theory, lead to far quicker processing times.

Both parties say the project “may be the first to show a practical quantum advantage for a financial application”.

“Currently, many small-and-medium-sized businesses are unable to grow their companies due to a lack of funding as they are deemed ‘too risky’ by current credit rating models,” says SMU’s professor Pang Hwee Hwa.

“With shorter processing time, more businesses could be scored and with greater accuracy thereby creating more trust and providing greater access to finance for companies than ever before.”

Tradeteq already uses artificial intelligence (AI) to provide credit scores to those small and medium-sized enterprises (SMEs) which struggle to access financing.

The fintech’s credit scoring algorithms are used by Singapore’s Networked Trade Platform (NTP), and it says the project with SMU will boost this presence further.

“Quantum computing is set to be a gamechanger for many sectors, and we’re excited to be leading the charge for trade finance,” says Tradeteq’s head of AI Michael Boguslavsky, noting that the technology will give SMEs access to trade finance “which, under normal credit reporting, would not have been possible”.

The country’s financial regulator is supporting the project under the Financial Sector Technology & Innovation (FSTI) – Artificial Intelligence and Data Analytics (AIDA) grant scheme.