Some call it convenience. Others call it captivity. In either version, breaking up with banks is hard to do for customers nationwide because of technology advances.

In a Sunday report, The New York Times credits online banking as to why consumers won’t give up their banking partners, even when financial institutions tack on new fees when consumers pay for things.  Why? Consumers are trying to avoid a hassle, like the headaches associated with resetting up bill pay. Nelson D. Schwartz of the Times writes:

“The Internet banking services that have been sold to customers as conveniences, like online bill paying, serve as powerful tethers that keep them from jumping to another institution.”

In other words, to re-set up a bank account online to pay bills may be worth consumers avoiding because of the legwork required. That’s a powerful notion considering there are a ton of consumers using online bill pay functionality. Our most recent Bank Innovation Monitor data reveals that 77% of all Americans would consider using “pay bills” online in the next three months, meaning the feature takes a backseat only to “check account balance” in terms of consumer interest and usage. 

What it all comes down to, in the end, is value. A consumer may tolerate fees to avoid a hassle, as long as there is something in it for him. Last week, we blogged on how banks need to further add value to justify new fees. The Times article heightens our view. We imagine that as mobile banking usage crescendos into mass market adoption, the channel will serve as the perfect vehicle to provide new functionality to strengthen consumer-bank ties, if executed properly.

The need for FIs to offer more value will only rise as other innovators make it easier for consumers to switch banks. Deluxe Corp., for example, recently launched SwitchAgent to troubleshoot the transition from Bank A to Bank B for consumers. The product transfers bank customers’ pre-authorized payments and deposits from their old to new accounts, reports The Star Tribune. Though we don’t expect such technology to inspire the majority of consumers to flee their banks —especially since smaller institutions need to improve their online and mobile banking offerings — we do think the IT will encourage a population to end a banking relationship. The consumers’ views of their banks continues to get uglier. Nov. 5 marks Bank Transfer Day, an event that encourages consumers to flee the big banks. When switch banks gets its own “day,” you know something is afoot.