Local banks make their steps on how to integrate blockchain and they also start creating this in some country. banks will not be replace by blockchain. even so, they use it as a system to be more transparent and offer to their users that banks can be improve more to their services that blockchain can provide.
Indeed, it's a technology that helps them to make their operations better, bank is a business of trust, so they should be more transparent to live by their nature of business. Blockchain has been use within the bank already and I'm delighted to say that our banks in our country has been using blockchain already and adopting to crypto as well. and to what I want to know is crypto banks will replaced local banks? 
That's hard to tell, Banks is the biggest financial industry in this world, they gain the trust of the people more than any financial business so it's not gonna be easy. Also, crypto banks has to offer something better than the current banks now so they will excel, I believe bank now can adopt with crypto and they can also be a crypto and fiat bank at the same time.