TFD Initiative – evolution of credit scoring using quantum computing

In April 2020, the Singapore Management University (SMU) and Tradeteq embarked on a project entitled “Exploring the Advantages of a Quantum System for Machine Learning applied to Credit Scoring” which aims to develop quantum-computing based credit scoring methods for companies.

We are delighted to invite you to the next TFD Initiative webinar on the evolution of credit scoring using quantum computing. The session will be introduced by ITFA, WTO and ICC whilst Singapore Management University and Tradeteq will outline how new technologies further increase risk transparency in support of SME financing.

Emmanuelle Ganne, Senior Analyst, Economic Research Department at WTO said: “The participation of micro, small and medium-sized enterprises (MSMEs) in international trade remains limited for a number of reasons, including lack of access to finance, in particular trade finance. The current crisis has exacerbated existing challenges faced by MSMEs and underlined the need for urgent action to be taken to support small businesses. Blockchain and data technologies are interesting avenues to explore. By increasing risk transparency, they can help extend financing to MSMEs.”

Olivier Paul, Director Finance for Development, ICC added: “MSMEs comprise an estimated 80 percent of employment in many countries and collectively employ billions of people. They are the backbone of the global economy and are fundamental to the day-to-day provision of goods and services around the world. But recent reports indicate that many MSMEs do not have enough working capital to last thirty days in this crisis. Action is needed from governments, private sector leaders and international institutions to ensure the continued viability of our MSMEs which is why the ICC has launched a campaign to Save Our SMEs.”

Professor Pang Hwee Hwa, Dean of SMU School of Information Systems, explains: “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. With shorter processing time, more businesses could be scored and with greater accuracy thereby creating more trusts and providing greater access to finance for companies than ever before.”

Michael Boguslavsky, Head of AI at Tradeteq comments: “Tradeteq’s AI credit scoring capabilities are already industry leading and this project we are embarking on with SMU is going to further develop our technology. We are exploring the development of quantum-based neural networks to more quickly and more accurately give credit scores to SMEs and transactions, allowing them access to trade finance which, under normal credit reporting, would not have been possible. Quantum computing is set to be a gamechanger for many sectors, and we’re excited to be leading the charge for trade finance.”

The webinar will take place on June 23^rd at 16:00 Singapore time / 09:00 London / 10:00 Paris. Please register via email to alexiavella@itfa.org. We look forward to providing ITFA members a fruitful educational opportunity.