Fujitsu Quantum–Inspired Digital Annealer Delivers Securitisation Optimisation for main incubator
- Successful Proof of Concept (PoC) with Fujitsu Digital Annealer demonstrates potential for optimization of securitisation transactions
- Results of PoC with Commerzbank Group’s research and development unit, main incubator, show a more efficient and faster process
- Digital Annealer achieved optimisation of customers’ liquidity management
Optimising asset-backed securities
Receivables from leasing contracts are sold to investors by car manufacturers in order to optimise their own liquidity management. They are traded by banks, for example, as tradable securities, with bundles categorised by risk profile and other factors. The Digital Annealer optimised the bundling of receivables, giving customers the ability to fully leverage the potential of securities issued by them.
The PoC focused on the selection optimisation of several thousand vehicle leasing assets for a securitisation portfolio. Critical factors taken into simultaneous consideration included regulatory requirements, absolute volume limits and percentage limits for specific asset characteristics needed to achieve greater risk diversification.
The resulting highly-complex combinatorial optimisation problem would require extremely long compute times utilising classical processors. In the future, true quantum computers will be capable of processing all combinations simultaneously to find instant results, but are still many years away from commercial viability. The Fujitsu Digital Annealer provides simultaneous calculation of combinatorial optimisation challenges by leveraging quantum characteristics in a digital architecture2
, making the PoC possible for main incubator in a business context.
Augustin Danciu, Technology Expert at main incubator, says: “As the research and development unit of the Commerzbank Group, we selected the Fujitsu Digital Annealer as it allowed us to test whether the current state of this technology is suitable for banking purposes, examined on securitisation optimisation. We first encountered the Digital Annealer at Fujitsu’s annual flagship technology conference Fujitsu Forum, where we were investigating future technologies. We moved quickly with Fujitsu to establish a Proof of Concept, and within the first month, achieved very exciting results, which our customers can ultimately benefit from. The benefits provided by the Digital Annealer are very promising.”
Wilhelm Petersmann, Vice President, Head of Financial Services, at Fujitsu Central Europe, comments: “The Fujitsu Digital Annealer helps revolutionise business planning by opening up new possibilities for optimising existing processes. Our work with main incubator is the latest proof that there is no longer any need to wait for commercial viability of true quantum computers to deliver instant solutions to complex combinatorial optimisation computations. The Proof of Concept demonstrates that extremely beneficial business outcomes are both practical and rapidly achievable for organisations, like main incubator, with the ability to identify and grasp new optimisation opportunities.”
Pricing and availability
The Fujitsu Digital Annealer is available as-a-service on a subscription basis, including technical and consulting services, support and optional additional consultancy for solution development. It can be delivered via the cloud or as an on-premises service offering.
Notes to editors
1main incubator GmbH is a wholly-owned subsidiary of Commerzbank. The company is headquartered in Frankfurt am Main. As the research and development unit of the Commerzbank Group, main incubator deals with future topics and emerging technologies such as quantum computing, blockchain, big data, machine learning, artificial intelligence, biometrics, robotics, virtual reality, cloud, open API, wearables and IoT. Through strategic investments in tech-driven start-ups main incubator participates in innovations and makes them available for Commerzbank and its customers.
2For a full description of the use of the Digital Annealer in financial services, see: https://www.fujitsu.com/global/digitalannealer/pdf/wp-da-financialsector-ww-en.pdf
Fujitsu is the leading Japanese information and communication technology (ICT) company, offering a full range of technology products, solutions, and services. Approximately 132,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.0 trillion yen (US $36 billion) for the fiscal year ended March 31, 2019. For more information, please see http://www.fujitsu.com.
About Fujitsu UK and Ireland
Fujitsu UK & Ireland employs over 9,000 people. We promote a Human Centric Intelligent Society, in which innovation is driven by the integration of people, information and infrastructure. We are committed to Digital Co-creation, blending business expertise with digital technology and creating new value with ecosystem partners and customers. We enable our customers to digitally transform with connected technology services, focused on Artificial Intelligence, the Internet of Things, and Cloud - all underpinned by Security. Our customers cover both the public and private sectors, including retail, financial services, transport, manufacturing, government and defence. For more information please see http://uk.fujitsu.com
Date: 29 August, 2019