Only if the inefficiency is large enough to overcome other forces.

Or to put it another way, picture if every single individual teams at Google did this to the tune of 100k a year, per team, and assume among 135,000 employees there are 13500 teams.

That's 1.35 billion dollars. Well under 1% of their revenue.

No way is a competitor going to appear that is identical to Google in every way except they have better budget management. Google has too many moats around their business, they can be really inefficient in many many ways and still dominate in multiple markets.

I work at one of those US bank.

The amount of inefficiencies in form of red tape, confusing processes, custom half-baked tools that crash half the time is just mind-boggling. I've spent more than a week now for opening firewall on one ip/port on one host just to test my prototype in dev environment(local machine or docker are not an option due to lack of admin rights ), and it's still in change approval stage. If we weren't this giant too-big-to-fail bank we'd be out of business by now.

It was not even believed by Adam Smith. He writes that it only works that way in a controlled environment. That’s why European countries usually rank higher in market freedom than the US, because we don’t have companies getting so cancerously big that they have very real effects on law making (how lobbying is legal is still beyond me)