Genome Blog / articles / Understanding BIC numbers: your essential guide to banking codes
May. 7, 2021
Article was updated on 05.11.2024
Just like everything in the modern world, making bank transfers, especially international ones, should be simple and quick. However, making international payments can still be tricky and challenging, with all the confusing information and data that must be provided.
So, let’s look at one of the crucial parts of creating a cross-border transfer – the SWIFT / BIC numbers.
Genome‘s team will explain what BIC and SWIFT codes are, why they are needed, and where to find them.
What is a Bank Identifier Code (BIC)?
BIC stands for Bank Identifier Code and is a number used to instruct an international transfer correctly and send the funds to the recipient’s bank.
You’ll need a Bank Identifier Code whenever you’re making or receiving a payment from a person from another country or using SWIFT transfers.
Essentially, this code allows banks worldwide to be identified when an individual or a company sends an international payment.
Note that BIC can also stand for a Business Identifier Code. Both terms can be used interchangeably, but Business Identifier Code can be used when referring to non-banking financial entities.
Is BIC the same as SWIFT?
SWIFT and BIC numbers are, in fact, the same thing. Let our team explain where the confusion comes from.
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. It is a worldwide messaging network that works in 212 countries. It is the largest and most widely used system for processing international payments. Each bank within this global network has its unique BIC – Bank Identifier Code.
Thus, SWIFT and BIC numbers are the same terms, and the former one is actually misused. However, because a BIC code is needed to make a SWIFT transfer, the SWIFT number is a more commonly used term now. You can also come across such terms as SWIFT ID or SWIFT identifier code, which is also used quite often.
Is BIC the same as IBAN?
SWIFT codes and IBANs are different things. While the SWIFT / BIC code identifies the bank, the IBAN identifies a unique bank account. IBAN stands for International Bank Account Number and is most commonly used for SEPA payments. However, other transfer options can also use the International Bank Account Number to identify the beneficiary more easily.
Thus, in many cases, to send an international payment, you’d need both an IBAN and a BIC / SWIFT code. If you do not provide an International Bank Account Number, the funds can be stuck with the bank and won’t settle in the necessary bank account.
For additional information on what an IBAN is and how to obtain one with Genome, check our blog post.
The format of a BIC number
The format of BIC and SWIFT codes is between 8 and 11 characters long. This combination consists of both letters and numbers.
Let’s have a look at the next BIC / SWIFT code example:
LOYDGB2LXXX
LOYD – 4-character bank code, which is a shortened version of the bank’s name. The full name of the current bank is Lloyds Bank.
GB – 2-character bank’s country code. In this case, it’s Great Britain.
2L – 2-character location code that signifies the city with the bank’s main office. Here it’s London.
XXX – 3-character branch code. It can either be missing (then the SWIFT number will only have eight symbols) or showing as XXX (as in our example) instead of figures. If the numbers identifying the branch are not there, then the bank is responsible for moving funds to the necessary account.
The purpose of BIC numbers in financial transactions
A BIC/SWIFT code is just the combination of letters and numbers signifying a specific bank in a SWIFT system. These codes were implemented to ensure the funds reach the correct bank in the vast SWIFT network. That is why you’d need a SWIFT ID of the recipient’s bank when instructing a transfer with most banks and financial institutions, including Genome.
The SWIFT code was created to instruct and receive international transfers correctly. As the SWIFT network unifies thousands of financial institutions, all of them can be differentiated by their BIC. SWIFT code allows the sending and receiving of money to the payee’s bank without any mistakes.
Before making a transaction, double-check if you have the correct BIC to avoid any delays with the transfer. If the SWIFT code is wrong, your funds may be stuck in between the banks for days.
How to order a BIC code
Luckily for clients, the order of a SWIFT code lies only on the shoulders of the bank’s head office or financial institutions in which they have a bank account. To get a BIC, banks must pass all the procedures and apply to the SWIFT system.
As for bank users, they will likely already have a BIC issued for them automatically as soon as they start a bank account if the said account is used for receiving and sending money abroad.
Inside Genome, our business wallet clients can unlock access to SWIFT international transfers and send international payments in EUR, USD, GBP, PLN, CHF, JPY, or CAD with a beneficial foreign exchange rate.
All you need to do is:
- Start a business wallet inside Genome;
- Check if your company is eligible for international transfers;
- Log into Genome and select any of your existing accounts.
- Go to the Account details menu and select the SWIFT tab;
- There, you will see the offer to get account details for your multi-currency IBAN account to send and receive international transfers;
- Click the Get account details button to send your request;
- You will get access to the account details within 1 business day after placing your request.
Moreover, as an alternative, all Genome’s users get access to regular and instant SEPA payments, allowing for fast, cost-effective payments within the Eurozone.
How to find and use a BIC number
A SWIFT code can always be found in your official bank statements. Additionally, you can contact your local bank branches or customer support team to request this information. Nowadays, the most convenient and speedy way to check your SWIFT code is going to the Account details tab in the mobile or web application of banks.
One more way to check your SWIFT number if you need to make international transactions is to examine official sources. On the next websites, you can look for registered SWIFT / BIC codes and even get additional information on some banks and their branches:
Once you know your Bank Identifier Code, you can share it with the person who wants to send you an international payment. And, if you find out the BIC of a person you will be transferring money to, you will need to fill out the code in the respective field. Just be mindful of foreign exchange rates.
Fees involved with using BIC/SWIFT codes
First, let’s clarify: you don’t have to pay to get a SWIFT code or an International Bank account Number, as they are generated for your account by the financial institution. Still, SWIFT codes are used for international payments, and those can be quite costly, reaching up to $50.
That is why anytime you use your SWIFT code for cross-border transfers, you need to pay extra money.
As for Genome, we offer our business wallet users SWIFT transfers for international payments. Individuals and companies can also use SEPA Credit and Instant transfers to send money within the SEPA zone. All our pricing is transparent and displayed on the website.
Key takeaways
BIC/SWIFT codes are essential for identifying banks worldwide and ensuring that your international payment is secure and accurate. If you consider sending or receiving international payments, having a BIC is a must.
FAQs
What is the difference between a BIC code and a SWIFT code?
BIC (stands for Bank Identifier Number) and SWIFT codes are no different and serve as unique identifiers of your bank within the SWIFT system. SWIFT code is just another name for a BIC.
Where can I find the BIC code for my bank?
You can find BIC and SWIFT codes in official bank statements or request this information from your bank. This information is also available in your financial provider’s mobile/web applications.
Finally, you can check the official websites listed prior in the article to make sure your SWIFT code is correct.
Are BIC numbers necessary for domestic transactions?
Usually, the BIC and SWIFT numbers are not necessary for sending money domestically. For example, in the EU, SEPA payments are used, and you don’t have to worry about foreign exchange rates. Other countries also have domestic bank transfer options.
How do I verify if a BIC number is correct?
To verify a BIC number, use an online BIC/SWIFT code checker or consult your financial institution. Most banks will have your BIC displayed inside your banking app/website.
Can BIC numbers change over time?
Yes, a change in BIC and SWIFT codes can change as a result of your bank’s rebranding or structural changes. In such cases, your financial provider will likely notify you beforehand.
