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* Internet used for nearly 1 bln stg transactions/day
* Banking apps downloaded more than 14.7 million times
By Matt Scuffham
LONDON, July 8 (Reuters) - Britons are using internet andmobile banking for transactions worth nearly 1 billion pounds($1.7 billion) a day and branch use is falling sharply,according to the British Bankers Association and accountancyfirm EY.
In response, banks are expected to close more unprofitablebranches while they invest in mobile and online services forcustomers who want to bank while on the move.
Internet and mobile banking is now used for transactionsworth 6.4 billion pounds a week in Britain, up from 5.8 billionlast year, the report showed. Banking apps for mobile deviceshave been downloaded more than 14.7 million times - up 2.3million just since January - while internet banking services aretypically receiving 7 million log-ins each day.
The report also forecast spending on contactless cards wouldrise to 6.1 million pounds a week this year from 3.2 million in2013.
"This report shows just how enthusiastically the Britishpublic is embracing mobile banking contactless cards and a rangeof other consumer-friendly banking technologies," said BBA ChiefExecutive Anthony Browne.
Royal Bank of Scotland said last month it wasinevitable that it would close more of its 1,900 branches afterbranch transactions fell by 30 percent over the past 3 years.Barclays, Lloyds and HSBC are alsoexpected to close branches, according to industry sources.
The Campaign for Community Banking Services, a lobby group,has warned that further closures could have a damaging impact onsmaller rural communities that rely on local branches for theirbanking services and called for measures such as branch sharingto avoid those which are the last left in a particular areabeing shut down.
But the BBA said branches would remain integral to bankingin the 21st century. It said 2,274 bank branches had beenrefurbished in the past two years, underlining banks' commitmentto their high street outlets.
"Day-to-day branch use is falling sharply and while the sizeof these networks will decline, high street outlets will remainimportant for those bigger moments, such as when a customertakes out a mortgage, wants to assess their financial options orresolve a complaint," the report said.
($1 = 0.5877 British Pounds) (Reporting by Matt Scuffham; Editing by Sophie Walker)
