potential, risks and challenges

In recent years, quantum technologies have attracted more and more attention both in science and in business. These technologies make it possible to process huge amounts of data in a matter of minutes, which makes their application beneficial for many sectors of the economy, including the financial sector.

My name is Maxim Budkin, and in this article I will try to consider the prospects for the use of quantum technologies in the field of mortgage lending in Russia and explore the possibility of using them for data analysis and issuance of loans, as well as the existing potential risks and challenges in integrating quantum technologies into this industry.

What is what in quantum technologies

Quantum technologies have become one of the most promising areas of science in recent years. They allow solving problems that are inaccessible to classical computing systems. Quantum computers are able to perform calculations using qubits – elementary particles that can be not only in states 0 or 1, but also in any intermediate state. This makes it possible to perform complex operations in much less time compared to classical computers.

Mortgage lending is one of the key sectors of the Russian economy, and its development is of particular interest to banks and other financial institutions. One of the problems that can be solved using a quantum computer is determining the price of real estate.. This can be useful for estimating the value of a mortgage, as well as for predicting price changes in the real estate market.

In addition, quantum computing can help to more accurately calculate the risks in mortgage lending. For example, use qubit computers to select the best scoring model and predict the probability of default. Another possible application of quantum technologies is the development of a more accurate project management system for the construction of residential real estate. A qubit computer can help determine the optimal sequence of work that can reduce construction costs.

What’s going on now in the mortgage lending market

DOM.RF Bank is one of the largest participants in the mortgage lending market in Russia. An assessment of the current situation shows that the process of applying for and obtaining a mortgage is quite complicated and time-consuming. This is due to the many different documentary procedures that must be completed in order to obtain a loan.

In this regard, the use of quantum technologies can significantly improve the conditions for granting mortgage loans, with the help of these technologies it is possible to create a system for fast and accurate analysis of loan applications, which will reduce the time for processing a loan to several hours.

In addition, the use of such technologies can significantly increase the level of security of mortgage transactions. This is achieved through the use of strong data encryption methods that guarantee the protection of the client’s personal information from unauthorized access.

Another important advantage of using quantum technologies is the ability to create individual programs for each potential borrower. With the help of such a program, it is possible to determine the maximum loan amount that a client can receive, with minimal risk for the bank. This helps to avoid errors in the calculation of risks and increases the efficiency of the bank as a whole.

Benefits and Risks

The use of quantum technologies in mortgage lending can help provide services to customers at a lower cost. The analysis of data on customer needs will be carried out much faster, which will make it possible to determine the type of loan that is most beneficial for them.

However, the use of quantum technologies also comes with many risks. One of the main ones is the high cost and complexity of deploying a system based on this technique.

Another risk is the need for high-class experts who are able not only to understand the complex algorithms of this technology, but also can properly configure its operation and conduct high-quality testing.

In addition, the lack of standardization of the processes for applying quantum technologies in Russia can become a serious obstacle for the bank, so for the successful implementation of this technology, one must be prepared for risk and have a certain strategy to minimize possible threats.

Forecasts

Using machine learning algorithms based on quantum physics, it is possible to calculate the risks associated with issuing a mortgage loan to a particular client. This allows a more accurate assessment of its ability to repay the loan, which in turn reduces the likelihood of default.

It is also possible to optimize the operation of banking systems through the use of nonlinear optimization based on the Grover method. This can speed up the mortgage application approval process for clients, as well as reduce the chance of decision making errors.

One of the promising areas for the development of quantum technologies in mortgage lending is the use of blockchain to store information about all stages of the issuance and payment of loans. This allows you to create a transparent system for recording transactions between the bank and customers, as well as minimize the possibility of fraud on the part of borrowers.

What is the result

The use of quantum technologies in the field of mortgage lending is a promising direction for the development of business processes, this will significantly improve the conditions for granting loans and increase the level of security of mortgage issuance operations, which in turn will lead to an increase in customer confidence in the bank.

Given the rapid development of quantum technologies in Russia, it can be assumed that by 2030 Bank DOM.RF will actively use these technologies to optimize its mortgage issuance processes.

In general, the prospects for the use of quantum technologies in the field of mortgage lending can account for a significant share of the total volume of innovative developments in the financial industry. However, the need for large financial investments and the complexity of creating quantum computers may delay the implementation of these projects.