Bitcoin has the potential to significantly impact traditional banking,it unlikely to eliminate local banks,we might assume the future where both traditional banks and  crypto curencies to a more effective financial ecosystem.
 
However. Bitcoin can adapt with traditional banks by keeping transparent record to reduce fruad,

Also Bank can offer crypto currency related services,such as digital wallet or exchange services to tap into growing demand.
Banks can also create new revenue stream to digital currency.
Bitcoin provides financial inclusion to the unbanked and underbanked populations posing a paradigm shift in how people interact with their finances.