Blockchain is perfect for its original use case, a distributed trustless database. The tradeoffs don't make any sense for a trusted system, i.e. replacing SWIFT or storing titles to property.
All the evidence to date suggests that banks are much more capable of providing useful financial services than blockchains. Can you give a counter example of a real world use?
Depend on what you mean by financial services. For example, no bank can beat crypto in price for remitting ~$1k to Southeast Asia within a couple of hours. I spent years as a digital nomad and there was no traditional fiat solution that came close.
I couldn't even find a traditional solution that beat crypto for converting ~$10k USD in the US to CAD in Canada (although I did have to write a script to do this via crypto and it sometimes took a few days for the markets to align favourably).
On the other hand, I highly doubt blockchain is going to beat banks at their main business of being a middleman between savers and borrowers.