HSBC Holdings Plc will be the first British financial institution to test an advanced data protection system.
This system for ensuring the safety of information arrays and countering external encroachments, which the bank will use in the pilot project mode, is managed by the British telecommunications giant BT Group Plc, the American commercial cloud public service Amazon AWS cloud, and the Japanese company Toshiba Corp.
In this case, the technology of quantum key distribution will be applied. This is a type of data protection in cyberspace, which, according to some financial institutions, can ensure the security of transactions worth trillions of dollars from the actions of hackers who use increasingly sophisticated criminal schemes. This technology provides that two remote parties can agree on a common secret key for encrypting and decrypting information. Varieties of the protection method have been developed for many years and largely depend on the properties of quantum physics.
Special attention should be paid to the fact that quantum distribution technology is not an independent method of cyber defense, but it can potentially become part of a security strategy for large banks as advanced solutions for protecting arrays of information in the virtual space develop.
The latest generations of quantum computers could use mathematics, which is the basis of modern encryption. In this context, the search for new encryption methods is of particular importance.
Colin Bell, Chief Executive Officer of HSBC in Europe, said that as technology develops and against the background of a decrease in the effectiveness of the most common methods of ensuring security, it is important for a financial institution to have the most modern and reliable encryption standards. He also noted that the use of innovative solutions, in this case, is a matter of time and not a theoretical possibility of responding to potential threats of a new generation. Based on these considerations, the financial institution decided to participate in the testing of an advanced data protection system.
HSBC is not the first bank to embrace quantum key distribution as a potential long-term security method. JPMorgan Chase reported last year that it was able to demonstrate through practical application the ability of the QKD network to instantly detect the operation of eavesdropping devices and eliminate this threat.
Over the past year, HSBC has significantly increased its efforts in the field of quantum computing. The financial institution has established a partnership with IBM, within which technology research activities will be carried out and scientists will be actively involved to create divisions in the innovation team.
As we have reported earlier, HSBC Launches Startup and Tech-Focused Innovation Banking Unit.