What Is A SWIFT Code?

Most people encounter SWIFT codes only when sending money internationally

When someone sends an international bank transfer, they are often asked for:

• a SWIFT code
• an IBAN
• bank details
• routing information

For many consumers, these terms feel confusing.

But SWIFT codes remain one of the core parts of international banking infrastructure.

Much of the world’s international banking system still relies on routing and messaging infrastructure developed long before the modern internet economy existed.

What is a SWIFT code?

A SWIFT code is an identifier used to help identify a specific financial institution during an international transfer.

SWIFT codes are sometimes also called:

• BIC codes
• Bank Identifier Codes

These codes help financial institutions route international payment instructions correctly.

SWIFT codes are linked to the broader:

SWIFT network

which stands for:

Society for Worldwide Interbank Financial Telecommunication.

The SWIFT network acts as a secure communication system connecting financial institutions worldwide.

Why SWIFT codes exist

International banking is complicated.

Different countries use:

• different currencies
• different banking systems
• different settlement rails
• different financial institutions

SWIFT codes help standardize how banks identify each other during international transfers.

This helps reduce confusion when routing payments globally.

The system became especially important for:

• international trade
• cross-border business
• global banking
• international remittances

“SWIFT codes help financial institutions identify where international payment instructions should be routed.”

What does a SWIFT code look like?

A SWIFT code is usually made up of:

• bank identifiers
• country identifiers
• location identifiers
• sometimes branch identifiers

Different banks have different SWIFT codes.

When sending an international transfer, the sender may need:

• recipient name
• recipient bank name
• account information
• SWIFT code
• sometimes an IBAN

Requirements vary depending on:

• country
• currency
• banking system
• transfer corridor

Why international bank transfers can still feel slow

Many people are surprised that international transfers can still take:

• hours
• days
• sometimes longer

One major reason is that international transfers often involve:

• multiple banks
• compliance reviews
• foreign exchange conversion
• regional settlement systems
• correspondent banking coordination

Rather than moving instantly between users directly, payments may pass through several institutions before settlement completes.