What is the SWIFT/BIC Code?

SWIFT is like a club for banks around the world. A SWIFT code is a special number that banks use when they send money to each other in different countries.

When people say SWIFT/BIC codes or SWIFT numbers, they are talking about eight or 11 digits. These numbers help in identifying different banks. Also, the bank branches while sending money abroad. If you want to send money to someone in another country, you will need a SWIFT code.

BIC stands for Business Identifier Code. These codes are like the ID numbers given by SWIFT to banks and other places that transact money.

If you are sending or receiving money to another country, you may be asked for a BIC code. This is an eight- or 11-digit number that tells you which bank the account you’re transferring to belongs to. BIC is sometimes used for both SWIFT and BIC codes.

What does SWIFT/BIC Stand For?

SWIFT/BIC stands for Society for Worldwide Interbank Financial Telecommunication/Business Identifier Code. Banks and financial institutions use a code to identify each other in international transactions.

SWIFT code and BIC are two terms that you often hear together. But they are not the same. BIC is only used by banks in Europe, while SWIFT codes are used by banks everywhere.

Think of a SWIFT code as a special name that banks use to send money to each other around the world. BIC is another type of special name that is used when sending money to a bank in Europe.

The SWIFT code consists of 8 to 11 letters and numbers. It has four parts: The first part tells which bank it is. The second part indicates the country in which the bank is located. The third part gives the location of the bank. And the fourth part (if any) indicates the bank branch.

On the other hand, BIC consists of 8 or 11 letters and numbers. It specifies the country, sequence code, location and sometimes the branch number.

In short, SWIFT codes are used to send money abroad, while BICs are generally used by banks. A BIC can be the same as a SWIFT code, but not all BICs are SWIFT codes.

Format of a SWIFT/BIC Number

A SWIFT/BIC code is the same as your bank address. It consists of 8-11 letters and numbers. It identifies your bank, country, location and branch. Here is the format.

A SWIFT code consists of 8 to 11 digits. They are divided into three or four parts. This may sound confusing, but it only happens when the same bank has more than one branch in a city.

Here is what SWIFT code look like:

AAAA – Bank Code
BB – Country code
CC – Location code
123 – Branch Code

The bank code consists of four characters, usually a shortened version of the bank name. For example, the bank code of Barclays is “BARC”.

The bank’s location is indicated by the country code. For example, “GB” means Great Britain. Other examples include “US” for USA, “CA” for Canada, “AU” for Australia, “DE” for Germany and “JP” for Japan.

The Location Code shows where the bank branch is. It has two letters or numbers.

You only need to provide the Branch Code section when the bank has more than one branch in the same area. It has three numbers and helps in identifying the correct branch for money transfers.

When Is a SWIFT Code Required?

If you want to send or receive money from a bank in another country. It could be for your business, or you’re sending money to a family member who lives far away. For that, you will need a SWIFT code.

Banks and other money-related groups use SWIFT codes to transfer money worldwide. Some of these groups include:

Foreign exchange companies
Clearing houses
Depositories
Money brokers
Brokering Institutions
Asset management businesses
Commercial houses

SWIFT codes help your money move safely and quickly and end up in the right place.

Why are SWIFT/BIC Codes Important?

Banks work with other banks to send money to different countries. They help transfer the money. They use BIC codes to ensure your money goes to the right place.

For you, it’s easy. After confirming the recipient’s SWIFT number, you can ask your bank to send the money abroad. Or, you can do it from your online bank account.

How to Find a SWIFT Code

Finding your bank’s SWIFT code is easy if you know what to look for. There are many places you can find a SWIFT code, even if it’s not for your bank. Some good places to check are:

Search on the bank’s website.
Check your bank statements.
Log in to your online banking and find it in the app.
Search on Google (but make sure any information you find comes from a reliable source)

Most banks know what their customers need. Therefore, they usually put their SWIFT code online to make it easy to find.

To find the SWIFT code, call your bank’s customer center and ask about your country’s branch.

It is also important to know the code of the person or company sending you the money. If you need help finding their bank code online, you may need to ask them directly.

How Does a SWIFT Code Work for International Payments

To make a SWIFT transfer, you need some important information:

Name of the person receiving the money
Address of the person receiving the money
Name and address of the receiving bank
SWIFT code of the bank
The account number or IBAN of the person receiving the money

Once you have this information, you can start sending your money to a bank in another country. Here’s how it usually works:

When you send money abroad, the bank may request identification to verify who you are. To send money, provide the SWIFT code, IBAN, and personal details for both you and the recipient.

Exchange rate: Next, your bank or transfer company will decide the exchange rate. This rate can change a lot, so try to understand when it’s a good or bad time to send money.

Sending Money: Now, you need actually to send the money. If you’re using a bank, it needs your money before it can be exchanged. If you are using a transfer company, you must pay first.

The system converts the money into the local currency of the destination country.

We check everything first, then send the money to their foreign account.

How long this takes can vary. It depends on the country you’re sending money to, how the banks there work, and even what time zone it’s in.

What’s the Difference Between IBAN and SWIFT Code?

An IBAN is like a unique code that identifies every bank account in the world. It has at least 15 characters and includes details such as country and account number. You must send money to other countries with an IBAN.

SWIFT code or BIC and IBAN are different. The BIC only tells you about the bank – it doesn’t give any information about the customer or the account. But, IBAN provides specific details on the account holder and the account.

To send money to another country, you need to provide both BIC and IBAN .

Conclusion

If you want to send money abroad, it’s important to know SWIFT code, BIC, and IBAN. These codes identify banks and accounts and make sure your money goes to the right place. For a successful international transfer, you must provide both BIC and IBAN. You can transfer money with confidence by staying informed.

FAQs

How do I find my bank’s SWIFT code?

You can usually find your bank’s SWIFT code in your bank account statements. It may also be available on the bank’s website or through an online search. If you are using Digital Bank, you can view your account details on your online profile.

Is an IBAN the same as a SWIFT code?

No, IBAN and SWIFT codes are not the same. An IBAN is a special number for international bank transfers. A SWIFT code identifies banks.

What is SWIFT code in banking?

In banking, a SWIFT code is a special code used for international wire transfers. When money is sent from one country to another, it is important to ensure it goes to the right place.

What is Swift Code UK?

A SWIFT code is a unique identification code for a bank in the UK. It follows a standard format called Bank Identifier Codes (BIC). These codes help transfer money between banks, especially for international wire transfers.