Hong Kong banks just starting to prepare for quantum threats: HKMA
The Hong Kong banking sector is in the early stages of preparing for the cybersecurity challenges posed by quantum computing. A new assessment from the Hong Kong Monetary Authority highlights that while some institutions have begun the transition, the industry has significant work ahead to reach full security readiness.
The regulator recently introduced its Quantum Preparedness Index to track the sector's progress. This index scored the banking industry at 2.3 out of 10. The score reflects a baseline for awareness, planning, pilot programs, and operational readiness. The goal set by the authority is to reach a score of 10 by 2030.
Quantum computing presents a specific threat to current encryption standards used by financial institutions. These machines have the potential to break existing cryptographic methods, requiring a shift to post-quantum cryptography. The survey conducted by the authority indicates that 68 percent of banks have started initial preparations, including awareness building and pilot projects. However, 32 percent of banks have not yet initiated any formal steps. Furthermore, approximately half of the surveyed banks lack a clear road map for adopting quantum-resistant protocols.
Despite the slow start, institutional interest is increasing. Board-level discussions regarding quantum risks are now happening at roughly half of the surveyed firms. About one-third of the banks are actively exploring or testing quantum-related applications.
To move the needle, the authority is coordinating with the Hong Kong University of Science and Technology. This partnership focuses on creating a toolkit to help banks prioritize their security updates. This initiative is part of the 2026 Fintech Promotion Blueprint, which seeks to improve the long-term resilience of the local banking system against new technological threats. Banks are being pushed to prioritize cryptographic agility as they move toward the 2030 deadline.