Quantum computing has shifted from theoretical threat to structured planning across Singapore’s financial system. With the Monetary Authority of Singapore (MAS) issuing a formal advisory to CEOs on quantum cybersecurity, launching a readiness index with the Cyber Security Agency (CSA) and introducing a quantum track under the Financial Sector Technology and Innovation Scheme (FSTI) 3.0, institutions now operate with clearer expectations on cryptographic transition and capability uplift. Singapore’s posture remains precautionary: regulators are preparing the financial sector for an eventual shift to post-quantum security even though timelines for mature quantum threats remain uncertain. While MAS has not prescribed detailed migration requirements, it has signalled that institutions should map their cryptographic assets, assess exposure to vulnerable algorithms and prepare for phased transition. As this framework evolves, the Singapore FinTech Festival has become an annual checkpoint for banks, regulators and deep-tech firms to benchmark readiness and refine priorities. Speaking on the sidelines of this year’s event, HSBC Singapore chief operating officer Tancy Tan outlined how the firm is building governance foundations for quantum, preparing for cryptographic agility under emerging global standards, and where quantum-inspired computation is already showing value. Her message is clear: quantum readiness is not about predicting hardware breakthroughs but ensuring the bank has the governance, architecture and talent to adapt. “Quantum itself is about digital trust of the future,” she said. Quantum within HSBC’s long-horizon transformation Tan situates quantum firmly within HSBC’s enterprise transformation priorities: supporting entrepreneurs, enabling innovation and strengthening digital trust. Quantum falls squarely in the third. “We are a bank that existed for 160 years. We want to make sure that we invest in quantum so that we continue to protect our customers,” she said. For HSBC, quantum readiness centres on the cryptographic foundations that safeguard customer data and protect the integrity of its systems. HSBC launched its global quantum programme in the UK in 2022 and expanded its second Quantum Centre of Excellence (CoE) to Singapore in early 2025. The Singapore hub complements its UK counterpart by extending capability into a region with strong research partnerships and active industry pilots. “Singapore has a very vibrant quantum ecosystem… not just in the last few years, but for a very long time,” she said, pointing to the National Quantum Network, telco participation, university research clusters and a growing startup base. This environment aligns with HSBC Singapore’s potential use cases—from payments and fraud detection to optimisation workloads. This alignment with national initiatives — from the Quantum Engineering Programme to MAS’ quantum-security advisory — positions Singapore as an ideal base for HSBC to test both defensive and computational pilots. Crypto-agility and regulatory alignment Tan is explicit about the regulatory direction. “MAS has issued an advisory on quantum risk to all FIs,” she said. “We are closely aligned to regulators’ guidance,” she added, noting that NIST has recommended phrasing out vulnerable cryptography by 2035. HSBC has already begun the internal work to put in place the programs and structures needed to meet quantum threats and enable crypto agility. “Certainly quantum technology is not for all application and all software, and we will certainly prioritise what is more important,” she said, adding that organisations need to evaluate their approach as they transition toward crypto-agility. Exploring quantum-inspired computation Beyond defensive posture, Tan sees immediate opportunity in quantum-inspired techniques. HSBC has been experimenting with quantum-inspired algorithms for optimisation workloads, Monte Carlo acceleration and fraud analytics — methods that deliver value without relying on fault-tolerant quantum hardware. Its recent collaboration with IBM showed that hybrid quantum-classical models delivered up to a 34% improvement in predicting bond-trade outcomes in the European corporate bond market. This mirrors wider industry experience: early quantum value is emerging from hybrid approaches that combine classical computation with noise-resilient quantum circuits. Dimensions of quantum readiness Tan defines quantum readiness along two dimensions. The first is quantum defence, which covers understanding an institution’s cryptographic estate, preparing for post-quantum algorithms and maintaining the agility to rotate methods as standards evolve. This aligns with MAS’ advisory and CSA’s readiness index. The second is quantum compute, which is still exploratory and involves having the capacity to test use cases, run controlled experiments and integrate quantum-inspired models into existing data architectures. “As long as the use cases are benefiting the customers… that is quantum readiness for us,” she said. Collaboration as a de-risking mechanism Tan emphasised the importance of sector-wide collaboration. She pointed to the MAS-led quantum key distribution (QKD) trial with DBS, OCBC, UOB, SPTel and SpeQtral. “Financial services partner more than we compete… when it comes to trust, it is all about ecosystem of knowledge,” she said. The trial produced a public white paper and paved the way for next-phase testing of alternative quantum-secure communication methods. HSBC’s Singapore CoE also collaborates with universities and quantum startups, translating research into practical experimentation. Talent, literacy and mindset Quantum readiness, Tan stressed, is organisational rather than purely technical. HSBC is running internal teach-ins to all staff across business, product, technology and cyber teams. “It is not about people suddenly becoming quantum talents… our cybersecurity guys are learning a new encryption technique.” Adaptability, she argued, will be decisive: “Mindset is the key skill that will last us in the next five years.” What success looks like For Tan, success will depend on strengthening engineering discipline, deepening cross-institutional collaboration and improving internal literacy. She cited ongoing work by HSBC’s quantum scientists and engineers, as well as research and prototyping through its CoE. Partnership success will rely on engaging regulators, telcos, universities and startups to shape shared approaches and test early-stage solutions. On the people side, Tan emphasised awareness — helping teams understand new cryptographic techniques and engage with emerging use cases without expecting a surge of quantum specialists. The goal is institutional resilience rather than hardware-linked milestones. A maturing conversation at the Singapore FinTech Festival Tan highlighted the shift in tone at this year’s festival. What began years ago as exploratory dialogue has become coordinated and outcome-driven, with more defined roles across regulators, academia, telcos and financial institutions. “FinTech Festival is 10 years in running… it’s growing bigger and bigger,” she said, noting the rise of deep-tech firms presenting practical security and optimisation use cases. “The whole financial system is an ecosystem… [the festival] brings everybody together in the same place with a common outcome.” A multi-year resilience and capability-building agenda Tan’s account demonstrates how a large institution can operationalise quantum readiness without overcommitting to immature technologies. The bank’s approach reflects MAS’ posture: regulatory expectations around risk mitigation paired with grant-driven experimentation under FSTI 3.0. Across her remarks, Tan’s message is consistent: quantum is a systems issue spanning governance, engineering, computation and talent. HSBC aims to evolve with the technology rather than race ahead of it, building readiness in step with regulatory direction and the pace of industry adoption.
