SWIFT is an acronym which stands for Society for Worldwide Interbank Financial Telecommunication. This is a type of banking system that is used to operate SWIFT codes, also called Bank Identifier Code (BIC). This code is used around the world, but it is unique to countries and banks. So what exactly is a SWIFT code? In this article, we will learn all about SWIFT code, understand what it is, its uses, how you can identify it, and how to get it depending on your bank and country. Let us know more detail about ‘What Is SWIFT Code?’.
What Is SWIFT Code?
A SWIFT code is a set of numbers (8 to 11) used by banks to identify the country an account number belongs to, its bank and its specific branch. For example, if you want to send money outside your country, this code is needed to identify the country, bank and branch of the recipient.
How a SWIFT Code Works and Its Uses
If you are sending money from one country to another, you would need an account number, but the not too famous criteria needed to ensure money is received by the recipient is a SWIFT code. So if you are sending money to someone outside of your country, be sure to ask for the SWIFT code of their banks. Here are the reasons why:
- it helps to identify the country an account number belongs to, its bank, location and branch when sending money internationally.
- It is necessary to ensure there are no mix ups with the transfer and the money reaches its appropriate destination.
- Without it, you stand the risk of losing money because it might not get to the recipient.
- It is a combination of numbers and letters. To identify, continue reading below.
How to Identify it?
it is a combination of numbers and letters made up of four features. These features have been mentioned above, they include
- Country
- Bank
- Location
- Branch
This code consists of eight to eleven characters and looks like this AAAABBCCDDD. These characters represent those four features above, as explained below:
- The four As, that is, “AAAA” represents the code of the recipient’s bank and it is written only in letters.
- BB stands for the recipient’s country code. It also comes only in letters.
- CC represents the location of the receiver and this is a combination of letters and numbers.
- Finally, DDD signifies the branch code. That is, the branch of the receiver’s bank and this also comes in letters and numbers.
How to Find Your Bank’s Swift Code?
Knowing it, what it is used for and how to identify it is not enough. The question now is how do you get it? Either just to know it and save it for when you need it (when money is being sent to you) or for when it is required of you in the process of transferring money outside your country. To find any bank’s SWIFT code, here are the steps to take:
- Check the bank’s statement: Depending on your choice when opening the bank account, you should receive bank statements either weekly, bi-weekly, monthly, quarterly, or yearly (either via paper or email from the bank). Whichever the case, the SWIFT code you need should be seen in your bank statements. This process, however, can only work for you. To find out the SWIFT code of a recipient through this means, you will have to tell them to check their bank statements by themselves and send the code to you.
- Search the website of the bank: Another way to find your SWIFT code is by checking the website of the bank. You can either find it in the FAQ section on the website or search for it. The good thing about this process is you can find your and a receiver’s SWIFT code using this means.
- Send an Email to the bank: If you have the bank’s email address, then sending them an email would work. However, this process can be slower and you might not be able to get it for someone else as you have to be a customer of the bank to ask for their SWIFT code.
- Check online: This is one last way and maybe the quickest to find the SWIFT code of any bank at all. Simply type in your search using your web browser and you would get the desired result you need.
Conclusion
This article contains all you need to know about SWIFT codes. The next time you see it or are asked for it, trust with the knowledge obtained from this article, you would know what it is and how to go about getting it. You may not need to wait until you need it, you can go ahead, get it and save it somewhere you cannot lose it. Trust this helps.
Frequently Asked Questions
1. What is the difference between a Swift Code and IBAN?
SWIFT code is used to pick out the country, bank and branch, while the International Bank Account Number (IBAN) is used to identify individual or specific accounts and it can be up to 34 characters (numbers and letters). However, both codes are necessary for sending money internationally.
2. Are SWIFT codes peculiar to individuals?
No, they are not. Rather it is peculiar to banks or branches.
