Switzerland’s financial industry is facing a growing risk from quantum computing, prompting the Swiss Financial Innovation Desk (FIND) to release a new seven-step action plan aimed at safeguarding the sector’s global status. The plan calls for urgent action to address quantum-related risks, including the potential for quantum computers to break current encryption methods, putting sensitive financial data and transactions at risk.
FIND has highlighted the threat of “Harvest Now, Decrypt Later” attacks, where hackers collect encrypted data now and decrypt it later when quantum computing becomes powerful enough to crack traditional cryptography. With the rapid advancements in quantum computing, this threat could materialize sooner than expected, possibly as early as 2028, accelerating concerns for the financial sector.
In its Action Plan to a Quantum-Safe Financial Future, FIND stresses that Switzerland’s financial institutions—trusted with approximately $2.6 trillion in assets—are particularly vulnerable due to their heavy reliance on secure data systems. The country’s reputation as a safe financial hub is at stake if it fails to act swiftly.
Seven-Step Action Plan
The seven-step plan outlines critical actions to help financial institutions prepare for quantum threats:
Establish Quantum Risk Governance: Financial firms should set up dedicated leadership teams to assess and address quantum computing risks.
Evaluate Business Functions and Systems: Identify which functions and systems will be affected by quantum computing risks, particularly those relying on cryptography.
Reduce Legacy Systems: Decrease dependence on outdated technologies and prioritize the adoption of quantum-safe cryptographic solutions.
Plan for “Harvest Now, Decrypt Later”: Firms must implement plans to migrate to quantum-safe cryptographic standards to protect sensitive data from future decryption.
Align with Global Standards: Firms are urged to adopt guidelines from leading bodies such as the U.S. National Institute of Standards and Technology (NIST) to ensure a uniform response.
Ongoing Process of Quantum Readiness: Quantum preparedness must be treated as a continuous process, with regular updates to strategies and practices as new threats emerge.
Unify Voluntary Efforts: The report emphasizes the importance of a collective, voluntary approach across the industry, as waiting for government regulations could delay necessary action.
Increased Institutional Awareness
FIND has been working closely with Swiss financial authorities, including the Swiss National Bank and the Federal Office for Cybersecurity, to raise awareness of the quantum threat. The urgency is reflected in the collaborative efforts between public and private sectors to prepare for the potential risks posed by quantum technologies.
On March 4, FIND hosted a delegation at IBM’s Zurich Research Lab, a leading center for quantum research and home to two Nobel Prize-winning discoveries. The visit was part of FIND’s “fact-finding mission” to better understand how quantum computing could disrupt the financial sector and to explore potential solutions.
An Opportunity for Leadership
Despite the looming threats, FIND also sees a significant opportunity for Switzerland. The country’s compact size, agile institutions, and global influence could allow it to lead the way in the transition to quantum-safe financial systems. By acting quickly, Switzerland could turn its vulnerability into a competitive advantage, positioning itself as a global leader in quantum-safe finance.
As Eva Selamlar-Leuthold, Head of the Swiss Financial Innovation Desk, wrote in a LinkedIn post, “The Swiss financial sector cannot only mitigate emerging risks but also position itself as a global leader in quantum-safe financial services.”
With the quantum computing threat accelerating, Switzerland’s financial sector must act fast to protect its future and maintain its competitive edge in a rapidly changing technological landscape.
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