Difference Between Swift Code And IBAN Code

To process transactions there quickly and precisely, banks and financial institutions use distinct identification numbers. Account number is one illustration of this type of identity number that enables both the bank and the account holder to perform and process each bank transaction. Likewise, the transfer of funds is one method that requires some kind of identification for banks to make quicker and more precise transactions between distinct banks around the world (Global Fund Transfer).

Earlier banking transactions were restricted to one bank or nation, but global transactions are rising over time, which requires some type of clear identification to ensure that your transaction takes place properly and in time. Swift Code and IBAN (International Bank Account Number) code are identification codes used by banks and financial institutions to make international bank accounts simple to identify.

IBAN Code

As the name suggests, IBAN (International Bank Account Number) is an international identification number that is the extension of your existing bank account number that can be internationally recognized. IBAN can be used to create global payments as it makes global transactions simpler and quicker. Developed by ISO (International Organization for Standardization), it is an international standard for defining global bank accounts with minimal danger of transcription mistakes.

In Simple Worlds, you can quickly get IBAN number from your bank and make global wire transfer of cash if you have someone in a foreign country to whom you want to make payment. IBAN involves country code, check numbers (Can be validated by a single normal operation in any country), bank account number, etc., which shows all the required data.

SWIFT Code

SWIFT code stands for the code ' Interbank Financial Telecommunication Society for Worldwide.' A SWIFT code is a universal way for the worldwide identification of banks. The SWIFT code is an alphanumeric code of 8 or 11 characters that identifies financial institution uniquely. A SWIFT code's first four characters are letters and specifically refer to the bank. The country code is the next two characters, and the last two characters are the location code. If a SWIFT code is 11 characters, this implies that a three-digit code has been added by the bank to indicate a bank's particular branch.

It is the normal Bank Identifier Codes (BIC) format that is approved by the International Standard Organization (ISO) and constitutes a specific branch of a bank or bank. The aim of these codes is to transfer cash between banks, particularly for global wire transfers, and to exchange other messages between banks.

Difference Between IBAN Code And Swift Code 

1. SWIFT code is used to identify a bank while IBAN is the International Bank Account Number.
2. Customers use IBAN to ship cash to other countries while banks use SWIFT to exchange economic and non-financial transactions.