Competition is needed for business. I learn about it in university, I learning business management now. Competitors are respect each other, although they fight to get market share but actually they don't hate each other. I think since bitcoin is become popular now bank service is getting better unlike in the past. I personally feel that bank is faster in term of local transactions now but it still can't beat bitcoin in term of international transactions and deflation.
Money isn't business though so I think that they are a bit different in terms of flourishing. I don't agree with you about the speed of transaction though, I think that banks still are much faster than bitcoin because we still don't have a definitive solution against network congestion which makes the transaction much slower.