An introduction to banking terms such as SWIFT, IBAN and BIC.
Whether you are an individual who works as a regular employee at an office or a business owner who is his own boss, you will still be dealing with financial transactions with a number of individuals and business entities. No matter what sort of financial transaction it is, you will have to deal with one bank or the other. Interactions with banks would entail having to know a few phrases and acronyms. Some of these acronyms such as SWIFT, BIC and IBAN will be thrown around a lot. You might be interested to know what they mean and how do you use them as part of your financial transactions.
BIC or simply bic code is a bank identification code that is used to identify a particular bank. Bic bank is a generic term that may refer any standard that is followed by banks across the world to uniquely identify each other. One such bic code bank standard that has been around for more than forty years is the SWIFT code system.
As it is with the bic acronym, bic swift stands for something much more elaborate – Society for Worldwide Interbank Financial Telecommunication. It is a long winded phrase but the acronym does not have any literal meaning that implies that swift code transactions will happen fast. The swift address codes are bic codes as explained in the previous section.
Moving on to the final item in our list, iban codes is an abbreviation for International Bank Account Number. It’s a one of a kind of a number that is assigned to any bank account, anywhere in the world. People have always been doing business across borders and this system helps bank reduce transcription errors. Iban bic swift helps such everyday people. Iban swift code is intended to make life easy, especially from a swift iban related financial transaction perspective.
Use of these codes
We have told you, in as simple words as possible, what do these acronyms mean. Let’s elaborate on their uses.
Take for instance the case of a swift bic number. There are probably hundreds of banks in the world. It is quite possible that there could be two different banks, completely unrelated and probably in different parts of the world. Yet, they could have the same name, which could cause a lot of confusion for folks who do business with each of these banks. So, to avoid this confusion, a standard was required and arose out of that need, the swift code bank. You could find swift code through your bank customer support department. Further, you can find swift codes online from your bank site.
The swift code bic organization itself does not participate in any financial transactions, though. It only maintains a record of which bank gets what code and allows others banks to use that code. It also allows you to do a swift code lookup. Similarly, the bic code iban is a unique identity given to every account in the world, irrespective of what country, bank or branch it belongs to. So, if you are doing business with a particular iban number with swift codes, there would never be any confusion about the recipient.