BFSI not ready to tackle Quantum Computing threats, says study
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Hyderabad: As the world moves towards
quantum computing
(CQ), there is a critical need for India's banking, financial services, and insurance (
BFSI
) sector to gear up for the unique threats it poses, said a report prepared by ISB Institute of Data Science (IIDS).Titled '
Quantum Resilient Banking
: Strategies for a Secure Transition,' the study found a very limited understanding of quantum computing among BFSI CISOs and CTOs, with
post-quantum cryptography
(PQC) readiness at an average of only 2.4 out of 5, indicating insufficient preparation. According to the study, 57.5% of those surveyed said they anticipate quantum computing to become a substantial threat within three years. This is even as phishing attacks (65%), DDoS attacks (47.5%), and social engineering (40%) have already emerged as the most frequent threats over the past year."The analysis demonstrates how technological and telecommunications progress has transformed
cybersecurity
risks.
Whilst quantum computing presents opportunities, it threatens existing Public Key Cryptography (PKC) algorithms," the study said. Quantum computing uses principles of quantum mechanics to tackle complex computational challenges. Unlike traditional computers that use binary bits, quantum computers leverage quantum physics principles such as superposition, tunnelling, entanglement, and interference.The research paper, which examined crucial vulnerabilities and inadequate preparedness for PQC implementation amongst BFSI CISOs and CTOs, has mooted a PQC migration framework for the BFSI sector that ensures minimal infrastructure disruption, straightforward deployment, and future-ready architecture.
It has recommended swift PQC adoption, govt-led guidelines establishment, quantum-resistant technology research funding, enhanced stakeholder cooperation, and improved cybersecurity education. It also stresses the importance of govt-established migration timelines and algorithm selection guidance.Prof Manish Gangwar, executive director, IIDS, said the report helps understand and address the unique challenges that quantum computing poses to the BFSI sector in India by highlighting vulnerabilities and providing a framework for PQC migration to empower organisations to proactively safeguard data and maintain trust in the digital age.
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