NatWest enters UK quantum programme to test financial crime detection
The bank is among 11 organisations in Digital Catapult’s third cohort, which will run to February 2027 and apply quantum work to banking for the first time.
By Ingrid Halvorsen · Staff Writer
· 3 min read
NatWest has joined a UK quantum innovation programme to examine whether the technology can help identify fraud and illicit activity across large transaction networks, Finextra reported. The bank is one of 11 organisations in the third cohort run by Digital Catapult, a deep-technology innovation group that works with government, industry and academia.
The cohort marks the first application of the programme to financial services and banking operations, according to Finextra. For banks, the immediate commercial question is whether quantum systems can process or analyse complex transaction relationships in ways that improve controls, efficiency or resilience in regulated operations.
Digital Catapult’s programme is designed to bring quantum specialists together with companies that have operational use cases. Participants will trial and validate proposed applications on a real quantum computer deployed at the National Quantum Computing Centre, known as NQCC, according to Paul Ceely, director of technology strategy at Digital Catapult.
Quantum computing uses quantum processors rather than conventional binary computing alone. In a banking context, the relevance is not a replacement of existing systems, but a test of whether quantum techniques can be applied to problems involving many interacting variables, such as transaction networks or infrastructure flows. The programme gives participants access to expertise and hardware to assess those ideas in a controlled setting before any commercial deployment.
NatWest’s stated area of work is financial crime detection across large-scale payment and transaction networks, Finextra reported. Banks already use established analytics, rules engines and machine-learning systems to screen activity; the programme will explore whether quantum approaches can add capability in that field.
Another financial services participant, CTA Fintech Solutions, will study how to optimise transaction flows between legacy systems and cloud infrastructure, according to Finextra. That work is aimed at improving cost efficiency and strengthening resilience in highly regulated environments.
The programme is scheduled to run until February 2027. Finextra reported that it will support commercial and collaborative partnerships intended to advance quantum innovation across UK industry.
The cohort also includes organisations outside finance. The Rail Safety and Standards Board, Health Innovation North West Coast and Pixon Chemie are among the other participants, according to Finextra.
Ceely said quantum adoption requires collaboration between several groups rather than isolated development. “Quantum adoption cannot be done in isolation, but in bridging the gap between quantum experts, experienced technologists, and industry leaders,” he said. He added that the cohort would test “novel solutions” on a quantum computer at NQCC with the aim of translating deep technology into commercial use.
No financial terms, investment amounts or deployment timetable beyond the programme’s February 2027 end date were disclosed in the report.
This story draws on original reporting from Finextra Research.