Finance FAQ

What is the swift code of bank or BIC code? - How does it work?

Feb/27/2023

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You might find that you're conducting more and more international business in an economy that is becoming more global. If so, you could be familiar with BIC and SWIFT codes. Are you curious about them and how they operate? Continue reading!

What is the swift code of bank or BIC code? - How does it work?

Why was the swift code of bank or BIC code system created?

Security in international money transfer is the top priority. Once wire transfer has been made, it cannot be reversed. As a result, the swift code or BIC code has been introduced to ensure safety and speedy international remittance through a telecommunication system between banks and financial institutions with a standardized format. To confirm the legitimacy of the banks or financial institutions involved in an international transaction, a swift code is required. This safety measure helps to ensure that money is transferred to the right account.

Every international transfer is executed through the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system. This vast messaging network helps banks and financial institutions move money quickly, accurately and securely. The system assigns each member institution a unique identification code known as BIC code to recognise the bank name, the country, city, and branch. Thanks to the SWIFT network, individuals and businesses can make electronic transfers or card payments internationally.

Formats of swift / BIC code

BIC stands for bank identifier code or identification code. When you conduct an overseas transaction, a specific bank or financial institution is identified by a code that is between 8 and 11 characters long. It ensures that your money is sent to the correct place and functions nearly like a postcode for your bank.

There is no difference between swift code and BIC. They are used interchangeably when it comes to international wires, they’re simply given different names by different banks and financial organisations.

What do BIC/SWIFT codes look like?

The format for BIC and SWIFT codes is standardised. They range in length from 8 to 11 characters and are structured as follows:

AAAABBCCDDD

AAAA – The first 4-character bank code indicates the unique digits of your financial institution. They are usually the initials of the bank’s name.

BB – 2-character country code tells you which country the bank is located in, such as ‘FR’ for France or ‘DE’ for Germany.

CC – 2-character location code indicates where the bank’s head office is located.

DDD – 3-character branch code is optional, refer to where the specific branch is situated. Because this code is optional, therefore, some banks or financial institutions might not use it and shorten the code like KUSRLT24 or they might replace the brand code by a triple X, for example: AAAABBCCXXX.

How can I get the swift code of my bank

There are various ways to help you find the swift code of your financial service providers. If you are the recipient of a cross border payment, you can look for your bank swift code in the payment statements. If you don’t have any in your hand, follow the below options:

Log into your online banking account and check the account detail menu.
Visit your bank website and search their swift code.
Call your local branch to get more information.
Search your bank swift code on the digital SWIFT/BIC search tool by providing your country and bank location data.

If you are the sender, it is essential to double check with your intended recipient the swift code and their bank details before authorising an international remittance. Your money can be delayed, sent back, or even end up in the wrong account if the code is incorrect.

How can I get the swift code of my bank

How does swift payment work?

Swift Codes are frequently used when performing transactions in international commerce. Swift codes enable businesses to accept payments globally and identify banks so that funds can be withdrawn and placed in the correct accounts. To ensure timely and precise payment, the organisation must find their swift codes of bank. For seamless transactions that lead to quick and simple payments, it's crucial to comprehend how Swift codes operate.

Firstly, the sender who wants to transfer money overseas will visit a local bank to initiate an international wire order. Sender will need to provide his/her local bank the beneficiary details including swift code of the recipient’s bank or financial institution branch.

Next, the sender’s bank will send a payment transfer swift message to the recipient bank through the secure SWIFT network.

As soon as the receiving bank gets the incoming payment by swift communication, it will clear the funds and credit the recipient's account.

Despite how effective SWIFT is, remember that it is just a communications system. In addition to not managing client accounts, SWIFT does not hold any funds or securities.

Transfer money abroad with DNBC Financial Group

To provide our customers with simple, no-hidden fee international payments, DNBC has partnered with many remittance providers worldwide. DNBC is safe and trusted by millions of customers worldwide, whether you're sending money to friends and family abroad or transferring funds between international accounts .

Transferring money overseas couldn’t be easier than ever with the DNBC mobile transfer app . You can manage your fund right in your hand, just download the DNBCnet app on App store or Google play and register your payment account online.

Next, open your app and choose to transfer money to other banks via swift menu, enter receiver account details, and confirm the transaction.

With DNBC Financial Group, you can transfer money abroad and get paid wherever you are across the globe.

Transfer money abroad with DNBC Financial Group

About DNBC Financial Group

DNBC Financial Group is an international payment institution. We serve both businesses and individuals with our remittance services. If you want to remit several currencies to other accounts, banks or overseas, we are able to help. We offer fast, efficient and effective fund transfer and payment facilities. To allow you to carry out your business or your life worry-free. Cash Management Services that we offer: