Bank codes demystified: IBAN and SWIFT

Banks and other financial institutions keep track of your money using a system of unique codes assigned to each bank or account they do business with. Different countries use different systems, and the two most common are IBAN and SWIFT codes.

SWIFT codes vs. IBAN numbers

What is a SWIFT code?

SWIFT is short for the Society for Worldwide Interbank Financial Telecommunication. Despite its oversized name, it's simply a global messaging network used by financial institution to send and receive information, such as money transfer instructions.

Unlike IBAN, which identifies specific bank accounts, SWIFT refers to a specific bank only — including banks in Australia. Some 40,000 banks and offices worldwide are part of the SWIFT network.

What does a SWIFT code look like?

A SWIFT number is an alphanumeric number containing information that can identify either a bank, or a bank and particular branch. It can be 8 or 11 characters long, depending on which bank office it refers to.

An example of a SWIFT code is this one for Westpac WPACAU2S. If the sending bank requires an 11 character SWIFT code, Westpac uses the same generic one for all of their branches, and it is WPACAU2SXXX. Another example is ING Bank, their SWIFT/BIC code is INGBAU2SXXX.

We can break down this SWIFT code to discover:

• A four-letter bank code.
• A two-letter country code.
• A two-letter location code.
• A two-digit branch code.

Where can I find my SWIFT code?

If you live in a country that participates in SWIFT, find your SWIFT number on your bank statement, by signing in to your online banking system or by calling your bank.

If you're sending money internationally and need a SWIFT number, ask your recipient for the SWIFT number of the bank to which their account belongs.

What is an IBAN code?

Short for International Bank Account Number, an IBAN code is a unique number assigned to specific bank accounts involved in international business. Though not exclusive to Europe, IBAN is used in most European countries. Australia does not use IBAN numbers, but you could encounter them when sending money to an international recipient — specifying the IBAN number makes for faster transactions.

What does an IBAN code look like?

An IBAN number is an alphanumeric number containing information that identifies a bank, country and account number. With lengths fixed by country, IBAN codes can be up to 34 characters.

An example of an IBAN code in at Great Britain's National Westminster Bank is GB 29 NWBK 601613 31926819.

Breaking down our UK IBAN code, we find:

• A two-letter country code.
• A two-digit transaction number.
• A four-letter bank code.
• A six-digit bank sort code.
• A unique number specific to the bank account.

Where can I find my IBAN number?

If you live in a country that uses IBAN, you can find your IBAN number on your bank statement or by signing in to your online banking system.

If you're sending money internationally and need an IBAN number, ask your recipient for the IBAN number of their deposit account.

Bottom line

The mysterious IBAN and SWIFT codes are anything but: They identify specific banks among the many financial transactions conducted worldwide among bank accounts. And they're especially important when it comes to international money transfers.

Learn more about getting the best rates and fees to friends, family and businesses abroad in our guide to international money transfers.

Frequently asked questions

• Are SWIFT and BIC codes the same thing?

  Yes. The confusion stems from the fact that the SWIFT system also handles bank identifier codes — or BIC. A bank's BIC will be the same as its SWIFT code.

• Do banks in Australia use IBAN codes?

  No. Banks in Australia don't use IBANs to identify specific banks or account numbers. We use SWIFT codes instead.

• Is BSB required for an international transfer??

  In certain countries banks and transfer providers will require an IBAN for the transfer to be processed. If this is the case, your BSB and account number can be combined but should not include any spaces or hyphens.

Written by

Rosie Russell

Writer

Rosie Russell is a money transfers producer at Finder. She is on a mission to make personal finance easier to understand. Rosie has a Bachelor of Communication (Journalism) and Bachelor of Arts in International Studies from the University of Technology Sydney. See full bio

Co-written by

Kelly Waggoner

Editor

Kelly Waggoner is a senior editor at Finder. She's worked with publishers, magazines and nonprofits throughout New York City, including ghostwriting a how-to on copyediting for the Dummies series. Between projects, she toys with words, flips through style guides and fantasizes about the serial comma's world domination. See full bio