Thinking about a life without banks would be impossible in the present times. They have become an integral part of our lives. Apart from lending and saving money, the next generation banking has offered us loads of useful services. The developments in the banking sector along with that in the arena of technology have made great improvements in the banking sector significantly.
As a result, bank-to-bank transfers, both international and national have been gaining recognition among the nonprofessional because of their unmatched safety and security offered in such transfers. These transfers could be easily completed within a matter of hours. The transaction would be done only when the sender offers requisite funds in his or her account. However, once the money reaches the bank at the receiving end, the money would be cleared instantly and could be accessed easily. These banks, both at the sending and receiving ends, should encompass reciprocal accounts with each other. In case, they fail to do so, the transaction would have to be made to the subsequent bank that offers reciprocal account.
Usage of SWIFT or BIC Code
International bank transfers would not be possible without using the SWIFT or BIC code. You might be wondering what are SWIFT or BIC codes. The SWIFT code refers to Society for Worldwide Interbank Financial Telecommunication. It is also known as ISO 9362, SWIFT BIC or even BIC code of SWIFT Id. It is has been the standard format of Bank Identifier Code or the BIC code. The International Standard Organization (ISO) approves this. The code would be in the form of an alphanumeric code that would exclusively represent the bank. This code has been used for both interbank transfers along with other interbank communication.
Working of the codes
Foremost, the sender would be required to approach the bank or the financial institution he or she wants to send the money from. They would be required to give the recipient’s account number along with the SWIFT code of that specific bank, where the recipient has an account in order to make the transaction.
Thereafter, the bank at the sending end would send a protected message to the bank at the receiving end, thereby requesting the payment to be made as per the stipulated instructions.
Usually, it would take only a couple of hours for the transfer to be completed. As a result, the funds would reach their destination account. At times, it could take a couple of days as well. For detailed information on the working of SWIFT or BIC codes, you can visit this website.