Now, the question: why it takes THAT long the smaller banks to go the same way and start using the blockchain?
Maybe because there are still large banks that are not regulating blockchain and that's why some smaller banks didn't regulate the blockchain also. There would be a chance that if all the large bank system start to regulate the blockchain in their system then maybe all of the banks including those smaller banks will regulate and follow it. Another one reason is because the smaller banks are afraid to used blockchain because they still don't know what is the use of this into their banking system and etc.