What financial institutions need to know about quantum computing

posted by James Boyd on Thursday, March 12, 2026 in SHAZAM Blog

Encryption keeps sensitive information, like emails, passwords and debit and credit card information, secure by transforming readable content into scrambled, unreadable code. This system works because only someone with the correct key can decrypt the information. But the rise of quantum computing is about to change things.

Why today’s encryption won’t hold up

Traditional encryption has long been considered safe because current computers can’t break it without the proper key. Quantum computing, however, uses the principles of quantum mechanics to solve complex problems at speeds far beyond today’s most powerful machines.

While this technology is exciting for scientific and technological breakthroughs, it poses a significant cybersecurity risk. Quantum computers will be able to break many of the encryption algorithms used today, making existing security methods obsolete.

Cybersecurity specialists are already developing post‑quantum cryptography to prepare for this shift. Although widespread quantum threats may still be another five years away, financial institutions should begin preparing now to stay protected. It’ll be too late to wait and only use the post-quantum cryptography when the time comes.

Why early preparation matters

One emerging concern is the possibility that attackers may capture encrypted data today and hold it until they can decrypt it with quantum technology later. Sensitive financial information could be at risk years from now if it isn’t protected with quantum-safe methods soon.

Community financial institutions need a proactive strategy to reduce long-term exposure and ensure their systems are ready for future encryption standards.

Steps to prepare for post-quantum cryptography

Below is advice from leaders in cybersecurity on what financial services organizations can start doing now to prepare.

1. Take inventory

• Identify all cryptographic algorithms, keys and protocols currently in use.
• Evaluate what information would be valuable to store and decrypt later.
• Remove unneeded data; less stored information means less risk.

2. Evaluate your systems

• Determine whether any legacy systems will be incompatible with future quantum-safe cryptography.
• Begin planning for infrastructure that can support longer keys, new certificate types and secure long-term storage.

3. Follow best practices going forward

• Ensure all tools and systems are modular, flexible and easy to update.
• Use modular cryptographic options in new deployments to avoid lock‑in.
• Consider rotating keys more frequently, especially for applications using high data volumes.

Positioning your financial institution for long-term security

Most community financial institutions will likely need vendor support to fully prepare for post-quantum cryptography. Keep in mind that because this technology is still emerging, it’s important to stay flexible and ready to adapt as new standards and best practices evolve. Preparing now ensures your community financial institution remains secure today and in the quantum future.

Resource:

Ians Research

Tags

1. security

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