SWIFT (Society for Worldwide Interbank Financial Telecommunication)

SWIFT is the global messaging network used by banks and financial institutions to send and receive secure information about financial transactions — such as international payments, trade finance, and securities transfers.

Each bank connected to the SWIFT network has a unique SWIFT/BIC code (e.g. BARCGB22 for Barclays UK), which identifies it during cross-border transactions.

Importantly, SWIFT does not move money itself; it transmits the payment instructions between banks, who then settle funds through correspondent accounts.

Example:

A UK business paying a supplier in Germany sends the instruction via SWIFT. The message tells the banks how to transfer euros from the UK account to the supplier’s German bank account.

Used in:

International payments, bank-to-bank communication, and trade finance operations.