The real corporate and investment bank cost challenge: the hidden economy
49 days ago
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49 days ago
Modern corporate and investment banks are tangled in a paradox: transformation programs are everywhere, yet real efficiency gains remain elusive. This paper explains why.
When formal decision-making slows or loses credibility, informal systems take over. Shadow functions emerge. Governance becomes performance theater. Workarounds multiply, not out of malice, but necessity. The result is a detour economy: costly, duplicative and invisible to the very programs designed to fix it.
This is not a story about process flaws. It’s about ambiguous decision rights, complex governance and a culture that rewards caution over clarity. Cost structures harden. Shadow organizations grow. Change programs stall. Leadership sees activity but not progress