Quantum computing: Are financial institutions ready?

March 12, 2026 Blog

By James Boyd, Vice President, Information Security 

Encryption keeps sensitive information, such as 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 that.

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 five years away, financial institutions should begin preparing now. Waiting to adopt post-quantum cryptography until the threat is fully realized will be too late.

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 exposed 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 systems are ready for future encryption standards.

Steps to prepare for post-quantum cryptography

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

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 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 that handle large 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. Because this technology continues to evolve, it’s important to remain flexible and ready to adapt as new standards and best practices emerge. Preparing now helps ensure your institution stays secure today — and in a quantum future.

Resource: Ians Research

SHAZAM, Inc., and ITS, Inc., provide this blog for general informational purposes only. The blog may be shared via direct link, provided the content remains unchanged and is presented as originally published. SHAZAM, Inc., and ITS, Inc., assume no responsibility for errors or omissions. By using this blog, readers acknowledge that the information provided does not constitute legal advice and is not a substitute for advice from a qualified, licensed attorney.