Thanks for getting in contact.
When you build banks for an FMOD Studio project, this compresses all assets. When you load a bank into a game, all of the asset metadata is loaded but not the actual sample data. The behavior for each asset when the banks are loaded is determined by the Advance Loading Mode.
The Advance Loading Mode allows for three modes:
Compressed - Assets are loaded into memory as-is and played. The amount of compression and encoder used is determined by the settings in the Encoding Settings (to the left of the Advanced Loading Mode). It is recommended to have all sound effects compressed.
Decompressed - At runtime, this allows for assets to be decompressed into PCM data when the banks are loaded, rather than being decoded as they are played. The ‘Decompressed’ loading mode can only be applied per asset. It is not recommended to decompress assets unless you have a specific need for it (for example: low spec mobile devices where CPU usage must be low).
Streaming - Assets are loaded into memory in chunks as it is needed and not loaded in its entirety. Streaming is good for long background music that isn’t time-dependant.
I hope that helps.