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What’s the difference between an IBAN and a SWIFT/BIC?
IBAN and SWIFT codes are both used to identify and facilitate international money transfers but the key difference between the two lies in the information that each code conveys. An IBAN is a unique identifier of an individual account, while SWIFT codes specify the bank.
| IBAN | SWIFT/BIC | |
| Short for | International Bank Account Number | Society for Worldwide Interbank Financial Telecommunication or Business Identification Code |
| Characters | Letters and numbers | Letters and numbers |
| Length | Up to 34 characters | 8 to 11 characters |
| Purpose | Used to identify specific bank accounts around the world | Used to identify specific banks around the world |
| Example | GB33BUKB20201512345678 | BUKBGB22 |
What is an IBAN?
An International Bank Account Number – more commonly known in its shorter form IBAN – is a bank code consisting of up to 34 letters and numbers. It is used as a unique identifier for bank accounts around the world when initiating international money transfers. An IBAN contains the account holder’s country, bank, and bank account and is used to ensure funds are deposited to the right account.
What does an IBAN number look like?
An example of an IBAN is: GB33BUKB20201512345678
The format of any IBAN number can be translated as follows:
The two digit country code (GB33BUKB20201512345678)
The two digit check numbers (GB33BUKB20201512345678)
The four digit bank code (GB33BUKB20201512345678)
The six digit sort code of the bank branch (GB33BUKB20201512345678)
8 digit code of the bank account number (GB33BUKB20201512345678)
When do I need an IBAN?
You’ll need an IBAN when making an international money transfer, to identify the specific bank account you want to send money to.
Where do I find an IBAN?
You can find your IBAN on account statements or on your internet banking profile.
Where are IBANs used?
IBANs are used in most countries around the world, though they aren’t used in the US.
What is a basic bank account number (BBAN)?
All characters after the two digit check numbers may be referred to as the basic bank account number. This will usually contain the actual individual bank account number as well as the bank code and bank branch reference.
Each country has their own specific format for basic bank account numbers, and depending on the country involved, it can be up to 30 digits long.
What is a SWIFT/BIC code?
A SWIFT code is another type of bank code, internationally recognized by banks and financial institutions as a method of identification when transferring money overseas. SWIFT codes are issued by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and should not be confused with IBANs.
SWIFT codes are shorter than IBAN numbers – made up of 8 to 11 characters – but they serve a similar purpose: to provide crucial details during the process of transferring funds to an overseas bank account. The SWIFT codes identify the bank, while the IBAN identifies the bank account.
SWIFT codes include the bank’s address, branch number and destination country of the relevant global remittance. SWIFT codes may also be referred to as a BIC: this stands for Business Identification Code.
What does a SWIFT code look like?
An example of a SWIFT/BIC is: BUKBGB22XXX
This information is interpreted by banks and financial institutions and translated into the following:
BUKB: Bank code. These four letters usually look like a shortened version of the bank name.
GB: Country code. These two letters represent the country the bank is in.
22: Location code. These two characters will indicate where the bank’s head office is located.
09L: Branch code. The last three characters will indicate the specific branch of the bank.
When do I need a SWIFT code?
You’ll need a SWIFT code when making an international payment, when you’ll be required to identify the bank of the recipient you are sending money to. You’ll also need their IBAN to show which bank account the money is going to - as well as any other relevant bank details.
Where do I find a SWIFT code?
You can normally find a bank’s SWIFT code on their website, app, where your account details are, and on any statements.
Do I need an IBAN if I have a SWIFT?
You’ll likely need an IBAN as they are required for international transfers to many countries around the world, even if you have a SWIFT code too.
Where are SWIFT codes used?
Most countries are on the SWIFT banking system – it’s used in over 200 countries and territories around the world.
Can you use an IBAN to find a SWIFT code?
Wherever customers find their IBAN, the SWIFT/BIC should also be clearly displayed in the same place. This can be in any of the following places:
Online banking account: View your account details or search for the option to display your SWIFT code
Online or paper bank statements: These will display your SWIFT code
On the bank’s website: If the bank does not have the SWIFT code displayed on their website you can call the bank or pay the branch a visit to find out your SWIFT code
A customer’s IBAN number will contain some of the same characters as the SWIFT code. However, these codes are not the same and therefore it is not possible to use an IBAN to find a SWIFT code.
Will you ever need both an IBAN and a SWIFT code?
You might need to use both an IBAN and SWIFT code for international bank transfers, as one specifies which bank the money is headed to and the other specifies which account within that bank. However, not all countries are on the IBAN system, so for transfers to these places you’ll only need a SWIFT code.
Sending money in the UK and EU
For those based in the UK and EU, an IBAN number will be required for SEPA transfers, whereas SWIFT codes will be needed for international deposits from outside the EEA: check out our SEPA vs SWIFT code guide here. Every country within the European Union (EU) uses IBAN, so if you are making a Euro transfer you will need both IBAN and BIC.
How do I make an international wire transfer?
To make a wire transfer, you’ll need to do the following:
Sign up to your provider: If you aren’t already registered with your chosen provider, sign up for an account. You may need to verify your identity
Fill in details about the recipient: You’ll normally need to provide their name, address, contact information and bank details - including their SWIFT/BIC and IBAN if required
Confirm your transfer: Ensure all the details are correct and finalize your transfer – it will normally take at least a day to process
Cheaper alternative to international wire transfers
International wire transfers are expensive and time consuming - if you’re looking for a cheaper alternative then you’ll find the best bet is a money transfer provider. These providers specialize in moving money abroad, and have their own network of bank accounts around the world that lets them avoid using the SWIFT system.
As a result, money transfer providers like WorldRemit, Wise and XE are able to offer faster and cheaper transfers abroad than traditional banks. They offer a range of options, from bank deposits to cash pickups, and often complete transfers faster and cheaper thank banks can.
