SWIFT codes and routing numbers power the action behind money transfer all over the world. Financial institutions use these special codes to exchange cash from account to account or even from country to country.
These codes tell the financial system where and how to send money.
SWIFT code (Society for Worldwide Interbank Financial Telecommunication) and routing numbers are used for identifying the banks when transactions are made both internationally and nationally. The SWIFT codes and routing numbers are just like the fingerprints of a bank or financial institution to identify the particular bank account.
SWIFT Codes – Society for Worldwide Interbank Financial Telecommunications
Financial institutions and corporations rely on SWIFT codes for transferring money internationally. It is a system managed by the Society for Worldwide Interbank Financial Telecommunications – SWIFT.
It is a cooperative association headquartered in Belgium comprised of more than 10,800 corporate customers, banks and securities institutions located in 200 countries worldwide. Does not hold your money instead, it provides a framework that allows companies and financial institutions to conduct business flawlessly.
A SWIFT code is comprised of 8 to 11 alphanumeric characters. This is as the digital address of each financial institution or bank. SWIFT code is a complex collection of bank or institution code, a country code, a location code, and a branch code.
These codes are combined in a comprehensive way that effectively identifies every institution on the network, anywhere in the world. In SWIFT code, first four letters denote the bank code, the next two are the country code, the following two letters or numbers will be the location code, and the last three numbers of SWIFT code will be the branch code.
The banks or financial institutions that have a SWIFT facility are proficient of receiving foreign wires. The SWIFT network facilitates the transfer of payments, securities, and Treasuries between said parties the world over.
The American Bankers Association Routing Numbers (ABA Routing numbers)
The Routing number system is used by American financial institutions and it is very similar to the international SWIFT system. The Routing number system was created in 1910 by The American Bankers Association, which is now used by the Federal Reserve Bank to maintain accounts of its 28,000 financial institutions.
A routing number has nine digits consist of two different codes and a check digit. Every number has its own meaning. The first two numbers in a routing number refer to the bank’s Federal Reserve District and the third digit refers to the bank’s original Federal Reserve check processing center.
The fourth digit has a zero that indicates that the bank is located in a city with a branch of the Federal Reserve Bank; otherwise, it indicates the state where the bank is located. Digits five through eight are only one of its kinds to each bank. The ninth digit is also called the check digit. The check digit is calculated using a simple algorithm involving the first eight digits. A routing number is an account number that the bank or the financial institution has with the Federal Reserve.
Routing number easily be seen on the bottom of the check. The Routing number system is also associated with online banking, electronic funds transfers, and designate automated clearinghouses.
SWIFT vs Routing Number
|SWIFT Code||Rounting Number|
| RBOSGB2L (RBS Bank)||121042882 |
(Wells Fargo – California)
AAAA – Bank Code
BB – Country Code
CC – Location Code
DDD – Optional Branch Code
|In The UK,|
BIC Codes & IBAN is used
|In the US,|
Used in US & US Based Banks
- SWIFT system is managed by the Society for Worldwide Interbank Financial Telecommunications and a routing number is an account number that the bank or financial institution has with the Federal Reserve.
- The SWIFT code and routing numbers, both are very important for money transaction. The routing number is used for domestic transactions and the SWIFT code is mainly used for international transfers.
- A SWIFT code has 8 to 11 characters which are made up of letters and numbers while a routing number has nine digits.
- Routing numbers are used for wire transfers, check verifications, and ACH Transactions and SWIFT codes are used for foreign wires.
When it is the matter of money transfer, nationally or internationally, both codes are a critical tool to ensure that the money transfer moves from one place to the other quickly, efficiently, and accurately every time