Published on
October 4, 2025
Checklist for Post-Quantum Readiness in Finance
Prepare your financial institution for the quantum era by transitioning to quantum-safe cryptography and securing sensitive data against emerging threats.
Quantum computing is reshaping financial security. Algorithms like RSA and ECC, which currently protect sensitive data, are vulnerable to quantum attacks. Financial institutions must act now to transition to quantum-safe cryptography (PQC) to prevent data breaches and maintain trust. Here's how to prepare:
- Inventory cryptographic assets: Catalog certificates, keys, and encryption processes across all systems, including cloud services and IoT devices.
- Assess vulnerabilities: Identify systems using weak algorithms like RSA-2048 or ECC and prioritize assets storing sensitive or long-term data.
- Plan migrations: Focus on high-risk systems like banking platforms, payment processors, and customer-facing apps. Use hybrid setups to test PQC algorithms.
- Collaborate with vendors: Ensure vendors support PQC standards and can handle future cryptographic updates.
- Align with compliance: Document every step, meet regulatory requirements, and establish governance for ongoing cryptographic updates.
Acting today ensures your financial systems remain secure in the quantum era.
Cryptographic Asset Inventory
To defend your financial institution against quantum threats, the first step is knowing exactly what you’re protecting. This means building a thorough cryptographic asset inventory - documenting every certificate, key, and cryptographic process in use. Without this inventory, it’s impossible to prioritize which systems need attention or create a clear migration plan.
Identifying Cryptographic Assets
Start by locating your digital certificates, encryption keys, hardware security modules (HSMs), and embedded cryptographic libraries. Digital certificates play a key role in authenticating servers, applications, and users. These include SSL/TLS certificates for web traffic, code signing certificates for software validation, and client certificates for user authentication.
Next, focus on private and public keys. These keys secure customer data, validate transactions, and protect API communications. Don’t overlook your HSMs and key management systems, which store and manage these keys securely.
Then, examine cryptographic libraries and APIs embedded within your applications. These could include encryption functions in mobile banking apps, payment systems, or trading platforms. Each library might use different algorithms, potentially requiring separate migration strategies.
It’s also essential to cover all infrastructure environments. Cloud-based services often use certificates and keys managed by providers, while older on-premises systems may rely on outdated cryptographic methods. Even IoT devices like ATMs, point-of-sale terminals, and security cameras often have embedded cryptographic components that are easy to miss.
Cataloging by Algorithm and Expiration
Once you’ve identified your assets, organize them to streamline the migration process. Classify them by algorithm (e.g., RSA, ECC, Diffie-Hellman) and note their expiration dates to plan quantum-safe upgrades.
Map out how cryptographic assets connect to the financial systems they protect. For example, a customer database might use multiple layers of encryption - database-level, application-layer, and network transport security. Understanding these connections is critical for assessing the impact of migrating individual components.
Also, document each asset’s algorithm, expiration date, and version. Older systems, such as those running outdated SSL/TLS protocols or legacy encryption libraries, may need significant updates to support quantum-safe algorithms.
Using Automated Tools for Discovery
Automation can simplify the process of tracking cryptographic assets. Start with network scanning tools to identify active certificates and their algorithms across your infrastructure. These tools can locate SSL/TLS certificates on web servers, email systems, and internal applications.
Certificate management platforms are another powerful resource. They provide centralized visibility into certificate lifecycles, including expiration dates and renewal schedules. Many financial institutions already use these platforms for compliance, making them a logical choice for quantum-readiness planning.
For a deeper dive, use application scanning solutions to identify cryptographic libraries and APIs embedded within your software. These tools can map system dependencies and flag incompatibilities with quantum-safe standards.
PKI visualization tools are particularly useful for understanding the relationships between certificate authorities, intermediate certificates, and end-entity certificates. These visual diagrams help plan migration sequences effectively - ensuring root certificates are upgraded before dependent systems transition to quantum-safe algorithms.
Finally, consider implementing continuous monitoring to automatically detect new cryptographic assets as they’re deployed. Financial institutions frequently add new services, applications, and integrations, each potentially introducing new cryptographic dependencies.
All the data from these tools should feed into a centralized asset database. This database should track current cryptographic implementations, planned changes, migration timelines, and the teams responsible for each task. Think of it as the command center for managing your organization’s transition to post-quantum cryptography.
Risk Assessment and Prioritization
Once you've cataloged your cryptographic assets, the next step is to identify which systems are most at risk from quantum computing threats. Not all cryptographic implementations carry the same level of risk - some protect highly sensitive data or critical business operations, while others handle less critical information. A well-structured risk assessment ensures resources are directed where they're needed most, addressing the most vulnerable systems first.
Assessing Quantum Vulnerabilities
With your inventory in place, it's time to evaluate each asset for its exposure to quantum risks. Start by examining the algorithms in use. RSA-2048 and elliptic curve cryptography (ECC) are particularly vulnerable to quantum attacks, while symmetric encryption like AES-256 may only require adjustments to key sizes. Systems using outdated encryption standards such as RSA-1024 should be flagged as immediate priorities since they are already considered weak by today’s standards.
Assets containing sensitive financial data and personally identifiable information (PII) should take precedence. For example, customer financial records, transaction histories, and PII require stronger protection than internal documents or marketing materials.
Data requiring long-term protection is especially at risk. For instance, financial institutions often retain loan agreements and investment records for decades to meet regulatory requirements. This means encryption used today must remain secure well into the quantum era.
Systems exposed to the internet or external networks, such as APIs handling third-party integrations, are also high-risk. These systems are more vulnerable than internal ones protected by multiple security layers.
Finally, assess the complexity of upgrading each system. Legacy mainframes running COBOL applications may need extensive modifications to adopt quantum-safe algorithms, whereas modern cloud-based services might be easier to update. These factors will help determine which systems should be addressed first.
Prioritizing High-Risk Systems
Certain systems demand immediate attention due to the critical roles they play:
- Identity and Access Management (IAM) systems: These control access to all other applications and data. A breach here could compromise your entire infrastructure. Focus on systems like certificate-based authentication, single sign-on (SSO), and privileged access management tools.
- Core banking systems: These handle deposits, withdrawals, and account management. Given their role in processing thousands of transactions daily and storing vast amounts of customer data, upgrading their cryptographic protocols - covering database encryption, API security, and inter-system communications - is crucial.
- Payment processing infrastructure: This includes platforms for credit card transactions, wire transfers, and digital payments. Strong encryption is already mandated by the Payment Card Industry Data Security Standard (PCI DSS), and quantum-safe algorithms will likely become a requirement in future compliance updates.
- Customer-facing applications: Mobile banking apps and web portals are directly exposed to potential attacks. These systems manage login credentials, transaction requests, and sensitive communications. SSL/TLS certificates protecting these connections are particularly vulnerable to quantum threats.
- Regulatory reporting systems: Systems handling encrypted reports for regulatory bodies - like those for Suspicious Activity Reports (SARs), anti-money laundering (AML) data, and stress testing - must also be prioritized. A breach here could lead to severe penalties.
Categorizing Assets by Risk Level
Classify assets into three tiers to streamline your migration efforts:
- High-risk assets: These include customer-facing systems, core banking platforms, payment processors, and systems handling sensitive financial data with long retention periods. Begin transitioning these systems to quantum-safe algorithms within the next 12-18 months.
- Medium-risk assets: Internal applications, employee systems, and data with shorter retention periods fall into this category. While still important, they can follow high-risk migrations. Examples include HR systems and operational databases that don’t directly manage customer funds or sensitive data.
- Low-risk assets: Development environments, testing systems, and applications handling non-sensitive data can be addressed later. Although lower priority, they shouldn’t be ignored entirely, as attackers could exploit them to move laterally within your network.
For each category, define specific timelines and allocate resources accordingly. High-risk systems may require dedicated teams and accelerated timelines, while medium- and low-risk systems can be handled through regular maintenance cycles. Documenting the reasoning behind each classification can help secure executive support and budget approval.
Consider implementing a risk scoring system to assign numerical values for factors like data sensitivity, system criticality, quantum vulnerability, and migration complexity. This standardized approach provides clear, objective criteria for prioritization and helps track progress across asset categories.
Keep in mind that risk levels can shift over time. New regulations, business growth, or advancements in quantum computing could change priorities. Plan to review and update risk classifications on a quarterly basis to ensure your strategy stays aligned with current threats and business needs.
Building Crypto-Agility and Migration Plans
Once you've completed your risk assessment, the next step is to create strategies that can adapt to evolving cryptographic needs. Focus on designing systems that are flexible, prepared for upgrades, and guided by clear migration timelines. Strong governance is key to transitioning smoothly to post-quantum cryptography, ensuring you don’t get stuck relying on outdated encryption as quantum computing advances.
Implementing Crypto-Agility Protocols
Crypto-agility is all about making it easier for your organization to switch between cryptographic algorithms without overhauling entire systems. One way to achieve this is by deploying hybrid systems that use both classical and post-quantum algorithms simultaneously. This approach helps secure communications while maintaining compatibility with older systems.
Another critical step is to separate encryption processes from your business logic. By using abstraction layers, you can make updates through configuration changes rather than rewriting large portions of code. Additionally, ensure that your certificate and key management systems are designed to handle algorithm updates. Once these agile protocols are in place, map out a clear migration plan to guide the transition effectively.
Creating a Migration Roadmap
A migration roadmap turns your risk assessment into actionable steps. Start by focusing on high-risk assets based on your priorities. Begin with pilot migrations in less critical systems to identify potential issues, then expand to sensitive areas once benchmarks and rollback procedures are tested and validated.
Be sure to build in extra time to address unexpected challenges along the way. Define clear metrics for success at each stage, such as performance benchmarks and security validation results, to track progress and ensure the process stays on course.
Governance and Compliance Oversight
Successfully moving to post-quantum cryptography requires strong oversight and coordination across departments. Form a cross-functional steering committee that includes representatives from IT security, compliance, risk management, and operations. This group will provide guidance, ensure accountability, and keep the migration aligned with organizational goals.
Appoint a dedicated project manager to handle day-to-day coordination. Establish detailed change management procedures specifically for cryptographic updates, including approval workflows, rigorous pre-deployment testing, and clear communication protocols. Keeping all stakeholders informed is essential for a smooth transition.
Document every step of the migration process thoroughly. Detailed records not only support internal reviews and troubleshooting but also help demonstrate compliance with regulatory requirements. Finally, plan for ongoing evaluations and updates as cryptographic standards evolve, ensuring your security systems stay strong in an ever-changing environment.
Testing and Deploying PQC Algorithms
Begin by testing post-quantum cryptography (PQC) algorithms in a hybrid setup alongside classical cryptography. This approach ensures they work seamlessly with existing systems while maintaining both performance and security. Once compatibility is confirmed, move to pilot deployments in controlled, low-risk environments. These trials are essential for evaluating how well migration strategies hold up in real-world conditions.
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Vendor Partnerships and Long-Term Planning
When it comes to preparing for Post-Quantum Cryptography (PQC), vendor partnerships play a pivotal role in achieving long-term security goals. Developing quantum-safe financial systems requires not only a robust migration strategy but also careful planning and collaboration with the right vendors. However, the current state of vendor readiness leaves much to be desired, with notable gaps that demand a thorough evaluation process. Aligning vendor selection with your broader PQC strategy ensures stronger and more secure systems in the future.
Collaborating with Technology Vendors
Take a close look at vendor PQC readiness, going beyond the surface of standard security checks. Did you know that only 3% of banking websites currently support PQC[1]? This statistic underscores the importance of choosing vendors who are genuinely committed to transitioning to quantum-safe systems - rather than those who merely talk about it without concrete action.
Set clear contractual expectations for PQC standards and support. Contracts with vendors should explicitly outline timelines for PQC implementation, the algorithms they will support, and their role in the migration process. These terms act as safeguards, especially when vendors might be tempted to delay upgrades due to cost or complexity.
On top of these safeguards, evaluate the vendor’s ability to support diverse algorithms and cryptographic flexibility. The landscape of quantum-safe cryptography is constantly evolving, and vulnerabilities may emerge over time. Vendors must offer solutions that allow for seamless transitions between algorithms to ensure long-term adaptability.
Keep an eye on vendor PQC roadmaps. For example, major players like Let's Encrypt, which holds a 42.5% market share[2], have shown limited progress in adopting PQC. Regularly reviewing vendors' plans and maintaining open communication ensures they remain aligned with your goals. This ongoing dialogue also ties into your governance and compliance frameworks, creating a cohesive approach to PQC migration.
Working with Financial Advisory Experts
Preparing for the post-quantum era isn't just about updating technology - it also requires careful financial strategy. Financial advisory experts play a key role in bridging technical challenges with business goals, transforming PQC migration into a comprehensive approach. By combining financial insights with technical planning, organizations can strengthen their path toward a quantum-safe future.
Optimizing Crypto-Asset Tracking
Tracking cryptographic assets across a financial institution is far too complex for manual methods or basic spreadsheets. Phoenix Strategy Group uses advanced data engineering techniques to create scalable ETL/ELT pipelines that automatically gather, clean, and organize cryptographic data from all parts of your organization.
Their method involves designing specialized data models tailored for cryptographic asset management. This ensures that every certificate, key, and algorithm is accurately cataloged and monitored. With automated workflows and advanced integrations, they centralize cryptographic data into a single, organized system, offering real-time insights into your inventory.
Thanks to their data synchronization capabilities, any updates, rotations, or migrations of cryptographic assets are automatically reflected across all monitoring and reporting systems. This eliminates the risk of outdated or inaccurate inventory records, a common issue with manual tracking.
Integrating PQC into Financial Planning
Post-quantum readiness isn't just a technical requirement - it’s a major financial undertaking that must align with your business objectives. Phoenix Strategy Group specializes in guiding growth-stage companies through scaling, funding, and exit strategies, and they bring this expertise to PQC planning.
Their fractional CFO services break down PQC migration costs, covering not only upfront technical expenses but also long-term operational impacts. This includes detailed cash flow forecasting and unit economics analysis to understand how cryptographic modernization affects overall efficiency. They ensure that migration expenses align with your business cycles and revenue patterns.
Using their AI FP&A copilot, Phoenix Strategy Group helps organizations prioritize cryptographic upgrades based on security risks and business impact. This data-driven approach turns PQC planning into a strategic decision-making process, ensuring cryptographic investments align with broader business goals while enhancing overall resilience.
Ensuring Compliance and Scalability
PQC migration comes with strict regulatory requirements, and compliance is non-negotiable. Phoenix Strategy Group brings expertise in compliance planning and system integration, ensuring cryptographic inventories meet current regulations and remain adaptable to future standards.
Their data engineering solutions provide automated compliance reporting, generating the documentation and audit trails required by financial regulators. Validation processes are automated, guaranteeing that cryptographic implementations meet both security and regulatory standards throughout the migration process.
Seamless system integration is another critical factor. Phoenix Strategy Group ensures that PQC migrations work smoothly with existing compliance frameworks, risk management systems, and audit workflows. Their deep understanding of complex financial systems allows them to implement cryptographic changes without disrupting established processes.
Scalability is just as important as compliance. Financial institutions need cryptographic solutions that can grow alongside their business and adapt to evolving regulations. Phoenix Strategy Group focuses on building platforms designed for long-term flexibility and scalability, ensuring that cryptographic infrastructure remains robust and adaptable well into the future.
Key Takeaways
It's time to act - post-quantum readiness can't wait. The threat quantum computing poses to current cryptographic systems is real. Financial institutions that delay preparation risk severe security breaches and falling out of regulatory compliance.
Start by mapping out your cryptographic landscape. Use automated discovery tools to locate all certificates, keys, and algorithms across your infrastructure. A clear inventory is the first step toward effective planning.
Focus on high-risk and mission-critical assets. Prioritize systems that are vital to customer interactions, payment processing, and regulatory reporting. This strategy ensures you're protecting what matters most while laying the groundwork for adaptable, future-ready systems.
Build crypto-agility into your systems. Design your infrastructure to support multiple cryptographic algorithms at once. This flexibility allows you to switch methods as standards evolve, avoiding downtime and keeping your systems secure.
Test before going all in. Pilot post-quantum algorithms in low-risk environments to identify potential issues. Hybrid solutions - combining traditional and quantum-resistant cryptography - offer a safe migration path while maintaining compatibility with your existing setup.
Align your technical and financial strategies. Transitioning to post-quantum cryptography is a significant investment. Make sure your migration plan considers cash flow, regulatory demands, and long-term growth to keep your business objectives on track.
Starting your post-quantum journey now can secure your competitive edge, avoid last-minute crises, and ensure you meet compliance standards.
FAQs
What steps should financial institutions take to prepare for post-quantum cryptography?
To get ready for the era of post-quantum cryptography, financial institutions need to take a few critical steps. First, they should perform a detailed cryptographic inventory to map out all their existing cryptographic assets and how they’re being used. Once that's clear, the next step is to develop a transition plan with clear milestones, including building flexible systems that can adjust as cryptographic standards evolve. Lastly, it's crucial to establish thorough testing protocols, vendor oversight, and governance measures to ensure the migration process is both secure and efficient. Taking these actions will help protect sensitive financial data and prepare organizations for the challenges of the quantum age.
What steps should financial institutions take to prioritize systems for quantum-safe upgrades?
To get ready for quantum-safe upgrades, financial institutions should kick things off with risk-based assessments. This means identifying their most critical systems, like those used for long-term data storage or transaction processing. Extra attention should go to platforms that manage high-value transactions or store sensitive customer data.
After pinpointing these key systems, the next step is building a migration roadmap that ties into the institution's broader strategic goals. Start with systems most at risk from quantum threats, and consider adopting crypto-agile solutions. These solutions offer the flexibility needed to adjust as quantum-safe technologies advance over time.
By following this approach, financial institutions can bolster their security measures and stay ahead in the shift toward post-quantum cryptography.
Why are vendor partnerships important for financial institutions preparing for post-quantum cryptography?
Vendor partnerships play a key role in helping financial institutions gear up for the challenges of post-quantum cryptography. By teaming up with experts in the field, institutions can tap into cutting-edge tools and specialized knowledge to design and roll out quantum-resistant cryptographic systems.
These collaborations also pave the way for the use of crypto-agile technologies, which keep systems flexible and ready to adapt as new advancements emerge. Beyond that, vendors can provide critical support with tasks like cryptographic inventory, analyzing potential threats, and developing remediation strategies - ensuring institutions stay prepared for evolving security risks.
