Quantum technology holds the potential to vastly increase computing power to solve real-world problems, but current quantum computers remain highly experimental and face major challenges, including high error rates.

The project, launched by HSBC in collaboration with tech giant IBM, combined quantum computers and traditional computing tools and focused on the European corporate bond markets.

The results showed a 34% improvement in the accuracy of certain price predictions compared to traditional methods, HSBC said.

“We now have a tangible example of how today’s quantum computers could solve a real-world business problem at scale and offer a competitive edge,” said Philip Intallura, HSBC’s head of quantum technology.

“We are on the cusp of a new frontier of computing in financial services, rather than something that is far away in the future,” he added.

In June, IBM laid out its plan to have a practical quantum computer tackling big problems before the end of this decade.

Real-world innovations that quantum computing has the potential to tackle include developing better fuels, materials, pharmaceuticals, or even new elements.

However, delivering on that promise has always seemed some way off.

Quantum computing uses principles of quantum physics – the science that governs the behaviour of particles at the smallest scales – to unlock new ways of processing information.