What Is An IBAN?

Many people first encounter an IBAN when sending money internationally

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

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

For many consumers, these terms can feel confusing.

But IBANs remain one of the core parts of modern international banking infrastructure.

Much of the world’s international payment system still relies on banking identifiers and routing systems developed before the modern internet economy existed.

What is an IBAN?

IBAN stands for:

International Bank Account Number.

An IBAN is used to help identify a specific bank account during international transfers.

It helps banks and financial institutions route payments correctly across borders.

IBANs are especially common across:

• Europe
• parts of the Middle East
• many international banking systems

The system was created to help standardize cross-border banking information and reduce errors during international transfers.

Why IBANs were created

International banking is complicated.

Different countries historically used:

• different account formats
• different routing systems
• different banking structures
• different settlement processes

That created challenges for cross-border payments.

IBANs helped introduce a more standardized structure for identifying accounts internationally.

The system became especially useful for:

• international transfers
• European banking
• cross-border business
• international remittances

“IBANs help standardize how bank accounts are identified during international transfers.”

What does an IBAN include?

An IBAN usually contains:

• country identifiers
• bank identifiers
• branch information
• specific account identifiers

The exact structure varies depending on the country.

When sending an international transfer, users may need:

• recipient name
• recipient bank information
• IBAN
• sometimes a SWIFT code

Requirements depend on:

• the country
• the banking system
• the currency corridor
• the financial institution involved

IBANs and SWIFT codes are not the same thing

People often confuse:

• IBANs
• SWIFT codes

But they serve different purposes.

Generally:

• an IBAN identifies a specific bank account
• a SWIFT code identifies a financial institution

International transfers may require:

• both
• one of them
• additional local banking information

depending on the transfer corridor.