JP Morgan is using the blockchain instead of mysql and a pile of code. To them and their customers it has nicer properties. It doesn't at all change the details that a bank is facilitating money flow, just how it is done, and at that a little more efficiently.
But it doesn't do it more efficiently (or, really, change how it's done). The coin is only available to JP Morgan customers, those who already have bank accounts with JP Morgan. It can only be transferred to other JP Morgan customers. It does the same thing they already do, but less efficiently.
JP Morgan is using the blockchain instead of mysql and a pile of code. To them and their customers it has nicer properties. It doesn't at all change the details that a bank is facilitating money flow, just how it is done, and at that a little more efficiently.