I'm pretty sure that most of the cost of normal banking does not stem from storing the currency amounts in customer's accounts (which is analogous to storing their private keys for them), but rather from providing customer service, securing the data and compliance with regulations.
A crypto-currency equivalent of a bank that could replace
traditional banking for the majority of users would have all those costs as well.
A crypto-currency equivalent of a bank that could replace traditional banking for the majority of users would have all those costs as well.