NatWest Works with 1QBit and Fujitsu to Develop New Method of Deciding Portfolio Composition

NatWest can now decide the composition for the bank’s £120bn HQLA portfolio faster and more accurately using 1QBit software and the Fujitsu Digital Annealer.


NatWest recently began testing with 1QBit algorithms and the Fujitsu Digital Annealer in order to solve a complex and computationally intensive problem.

The first experiment involved applying this new technology to a common, but highly complex, problem that every UK bank faces: deciding on the right composition for the bank’s high quality liquid assets (HQLAs) portfolio. HQLAs are assets such as cash and bonds that every UK bank must hold, and this calculation must be undertaken regularly. Using 1QBit software and the Fujitsu Digital Annealer, NatWest was able to complete this calculation much more quickly than their previous method and with an even higher degree of accuracy.

Due to the success of this first experiment, NatWest now thinks that quantum and quantum-inspired computing could dramatically change the way many processes are undertaken at the bank, and is beginning to look into which other portfolios could be optimized with this technology. The new method of deciding HQLA portfolio composition is already being implemented by the bank.

For more information on this project, see the article on