Lately we read everywhere about banks that will use blockchain technology and that this will help them save a lot of money. TRUE! Blockchain technology and smart contracts is way much more efficient and secure than traditional systems so the use of this technology will indeed save a lot of money for banks.
Settlements of payments and contracts and all kind of transactions will be faster, more efficient and more secure. Billions will be saved per year for these banks.
Other than that though nothing else will change in the way banks do business. These blockchains, these new ledgers I doubt that they will be public and auditable to and by everyone. It will be just a much better way for banks to do their business. These blockchains will not increase people's confidence in the new banking system because they will be private blockachains that miss the most important factor when it comes to increase confidence. Decentralization is everything!!
In order to improve the financial system banks should take a step back from the speculative trading and do what they are supposed to do in the first place anyway.That is to hold securely people's hard earned money, reward them with some interest and invest only a small portion of that money to productive loans that increase investment and consumption. In order for people to trust banks again that they are doing their job correctly, they should use public blockchains that people can see at any time their position and how much collateral they hold at any time.
A blockchain like this exist today. It is called bitshares and it is Steem's big brother. Dan Larimer aka 
Banks should create blockchains that can prove to the public their collateralized value at anytime. Otherwise nothing will change..