Let’s say you want to make an international transaction. You will have to carry out the transaction through a bank. At the time of making the transaction, you will be asked to enter a code, sent to you by the bank. This code is called the swift code. In this post, we will not only tell you about swift codes but also provide you a guide to bank transfers, so that you understand it better.
What is swift code?
Swift code is short for Society for Worldwide Interbank Financial. Swift code is used to identify a financial institution or bank in the world. Each financial institute or bank comes with a swift code that helps you to identify a particular bank from the rest.
You don’t have to find swift codes. You can ask for it from your bank. It is mainly needed at the time of making international transactions.
Swift codes are also called Business Identifier Codes (BIC) at times. Both the terms mean the same, so don’t get confused when you are asked for the BIC. A swift code comprises of 8 to 11 characters. The interesting thing is that each of the characters has a separate meaning. It includes bank name, branch code, and country name.
What is the swift code used for?
Swift code is needed at the time of making international transactions, payments, and transfers. Knowing the swift code helps you know the name of the bank, branch, and country name. All this information is important when making a transaction.
What are the advantages of swift code?
Swift codes are extremely important for banks. With the development of modern technology, financial institutions and banks are continuously expanding their businesses overseas. A swift code helps you to identify the bank you are dealing with.
In modern times, swift codes have been improved to meet the needs of international customers. The main advantages of swift codes are:
- It allows for faster transactions which means you can carry out a large number of transactions in less time.
- It reduces the cost of operation by reducing the time taken for each transaction.
- With the use of swift codes, you can take advantage of the banking community. It allows you to make your transactions swiftly and more convenient.
Next time, you make an international transaction make sure you know the swift code of the bank. It provides you important information that is needed at the time of making the transaction.