SWIFT is a code that helps to identify unique banks worldwide. It is also known as BIC. IBAN (International Bank Account Number) is a number that identifies a specific account involved in international transactions, such as money transfers.IBAN contains information about the country, bank and account number.
What Is a SWIFT Code and What Does It Look Like?
It is a unique identification code used by financial institutions to identify themselves and their transactions internationally. It stands for Society for Worldwide Interbank Financial Telecommunication and it is made up of 8 to 11 characters, typically in the following format:
- AAAA is the bank;
- BB is the country;
- CC is the location;
- DDD is the branch.
For example, a SWIFT code HSBC in the United Kingdom would look like HBUKGB4BXXX. The first four characters represent the financial institution (HBUK), the following two characters represent the country (GB), the third character represents the location (4B), and the last character denotes the branch (XXX).
What Is a SWIFT Code Used for?
It is a standard for financial institution identification. It helps to facilitate international money transfers, and it helps to ensure that the funds are sent to the correct institution.
The primary purpose of SWIFT is to help identify the recipient's bank quickly and accurately. You can use it when a transfer needs to be made from one financial institution to another, such as when sending remittances or making payments for goods and services.
What Is an IBAN Code and What Does It Look Like?
It is a unique code that identifies an account held in any country participating in the International Bank Account Number system. It is a standard for identifying accounts across national borders and facilitating payments.
It consists of up to 34 alphanumeric characters, including a two-letter country digits, two check digits and a Basic Bank Account Number. The BBAN itself consists of up to 30 alphanumeric characters that identify the country, financial institution and individual account. It typically looks like this: GB11 HBUK 1234 5678 90123 45.
It contains the country (GB), two check digits (11), Bank Identifier Code (HBUK), a 6-digit branch identifier (123456) and an 8-digit account number (789012345).
What Is the IBAN Code Used for?
The IBAN is an internationally recognized identification number used to identify an individual account. It is made up of a unique combination of alphanumeric characters and is used for money transfers.
It is used to facilitate the automated processing of payments and to ensure that payments are correctly routed. It can be used by banks, financial institutions and businesses to simplify the processing of transfers. It is also used to help prevent fraud and other financial crimes.
Difference between SWIFT and IBAN Codes
SWIFT and IBAN are two terms related to international money transfers. The main difference is that the first is used to identify the bank, while the second is used to determine the specific account involved in a transaction.
Another difference is that SWIFT is used primarily for international transfers, while IBAN is used for both domestic and international transfers.
Conclusion
To sum up, we would like to mention that there are some differences between SWIFT and IBAN. The main difference is in their identifying functions. Also, IBAN contains a SWIFT code and helps to identify the recipient's bank account.
SWIFT is a global standard for identifying financial institutions, while IBAN is a country-specific standard for specifying the account number.
