Core Findings - The report highlights that targeted enhancements in banks' Risk and Compliance functions could generate efficiency gains of 25billionto50 billion without compromising effectiveness, potentially unlocking up to 1trillioninadditionallendingcapacity[1][2]−Financialinstitutionsfaceexponentialgrowthincomplexityduetotechnologicalevolution,real−timefinanceexpectations,anddataexplosion,compoundedbyregulatorypressurestocombatfinancialcrimeandcyber−attacks[2]−Thereportemphasizestheneedforasystems−basedapproachleveragingmoderntechnologytomanagecomplexity,fosterresilience,anddrivegrowthwhilereducinginternalcomplicatedness[2][4]ComplexityandComplicatedness−Externalcomplexityintheglobalfinancialsystemhasincreased2x−3xoverthepastdecade,drivenbyfactorssuchasincreasedregulationsandinterconnectedness[9]−Organizationalcomplicatednesshasgrown35−foldoverthepasthalf−century,faroutpacingthe6−foldincreaseinexternalcomplexity[9]−Thenumberofnewregulationsperyearisnowmorethan6xwhatitwasduringtheGlobalFinancialCrisis[9]EfficiencyandTransformationOpportunities−Bankexecutivesseesignificantopportunitiesforefficiencygains,withpotentialannualsavingsof25 billion to 50 billion in Risk & Compliance operating expenditures [9] - These savings could unlock up to 1 trillion in lending capacity, addressing the 80trillionrequiredforglobaleconomictransformationoverthenextfewdecades[9]−Thefinancialsystemisnowatatechnologicalandculturalinflectionpoint,withincreasedcomfortinleveragingcloud−basedsolutions(93800 billion in annual tech investments and a 30% decrease in U S bank branches, overall operating costs for banks have not meaningfully declined [9] - Banks have spent nearly $250 billion on regulatory fines, excluding costs related to financial crime and its broader impact on the financial system [9] - The report calls for a comprehensive recalibration of people, processes, and systems to achieve efficiency gains and improved performance outcomes [4]