A SWIFT code, also known as a Bank Identifier Code (BIC), is an 8 to 11-character code that identifies banks globally. It is used to identify banks and financial institutions worldwide and facilitates money transfers between banks. The SWIFT code consists of 8-11 characters and follows a format that identifies the bank, country, location, and branch. The first four letters represent the bank and usually look like an abbreviated version of the bank name, while the next two letters indicate the country code. The remaining characters may be letters or numbers and are optional.
SWIFT codes are needed for international wire transfers to ensure that money is directed to the right place. They are also used for SEPA payments. Without a SWIFT code, it would be difficult to send or receive money from other countries.
It is important to note that a SWIFT code is different from an International Bank Account Number (IBAN) . While a SWIFT code is used to identify a specific bank during an international transaction, an IBAN is used to identify an individual bank account involved in the international transaction.
