Of course they are scared! As someone stated, "Bitcoin will do to the banks what e-mail did to the post industry. It will disrupt the whole system and it is just a matter of time!!!"
Yeah, some banks won't make it to the finish line. But still, email may have affected the post industry to a degree, though the telephone did the same or even more than that long before it. Neither killed this industry. We still have to use the post services to receive orders from online shops or whatever. Cryptocurrencies will compete with the banking industry, but personally, I don't think they will kill it just like Visa and Mastercard didn't kill it either. Loans in crypto are not very popular and widespread given the present levels of volatility, and that's unlikely to change in the near future. Thus, banks will stick around for some time.
Not would just stick for sometime but they would retain on their places on forever and as long theres a government it wont be easily derailed and lots of people do still believe on these institutions when it comes on money security, traditional transactions that most people do know and the convenience that it gives.We all know adoption isn't still at full extent when it comes to bitcoin and if coming to a point on where all people is already aware on bitcoins existence then we cant say on what would totally happen.