SWIFT is the acronym for the Society for Worldwide Interbank Financial Telecommunications network. In simple terms, the SWIFT network is a member-owned system made up of banks and financial institutions worldwide for financial messages and transactions.
Why is it important?
SWIFT plays a crucial role in international finance, helping to facilitate the movement of money and support international trade and commerce.
When you send money using the SWIFT network, your bank will communicate with the recipient's bank through the SWIFT network. This allows for secure and efficient transmission of information about the transaction, such as the amount of money being sent, the account numbers involved, and any other relevant details.
The SWIFT network also provides a messaging system that allows banks to communicate with each other about financial transactions, such as confirming the receipt of funds, resolving any issues that may arise during the transaction, and providing updates on the status of the transaction.
It's important to note that SWIFT itself does not handle the actual movement of money. Rather, it is a messaging network that facilitates communication between banks. The actual movement of funds is handled by each individual bank involved in the transaction.
What do you need to facilitate a SWIFT transfer?
Other than the required personal details of the sender and receiver, the SWIFT/BIC code and the International Bank Account Number (IBAN) or account number are needed. We know what SWIFT stands for but what about BIC? BIC is the acronym for Bank Identifier Code.
The SWIFT or BIC code locates any given member bank in the SWIFT network. Each SWIFT member bank has its own unique SWIFT/BIC code. We recommend that you always check the exact SWIFT code before making an international payment as it will save you time.
The International Bank Account Number (IBAN) is a standardized format for bank account numbers used in many countries around the world. It consists of a two-letter country code followed by a series of alphanumeric characters that identify the bank and the specific account number.