Quantum-Inspired Reconciliation: Transforming Large-Scale Banking with QUBO Optimization

This research introduces a cutting-edge framework designed to modernize banking reconciliation by moving beyond traditional rule-based systems toward quantum-inspired constrained optimization. By modeling the reconciliation process as a Quadratic Unconstrained Binary Optimization (QUBO) problem, the system can effectively navigate complex many-to-many transaction relationships and value discrepancies through the use of slack variables and penalty-based constraints.
The methodology employs a quantum-inspired annealing solver and a window-based decomposition strategy to maintain scalability, allowing it to process millions of transactions while significantly outperforming greedy and rule-based algorithms. Practical results demonstrate a 15 to 22 percentage point improvement in match rates and a 60% reduction in manual exceptions, offering a scalable, high-precision solution for modern financial operations

Видео Quantum-Inspired Reconciliation: Transforming Large-Scale Banking with QUBO Optimization канала Phaneendra Yerra