'SWIFT' stands for the Society for Worldwide Interbank Financial Telecommunication.
BIC is the International ISO standard ISO 9362. This standard specifies the elements and structure of a universal identifier code, the business identifier code (BIC), for financial and non-financial institutions, for which such an international identifier is required to facilitate automated processing of information.
Members of the SWIFT network use SWIFT codes to move money securely between accounts that are located in different countries.
Each SWIFT code consists of standardized information your bank needs to make sure that your money reaches the bank account of your beneficiary safely.
What does a SWIFT code look like?
SWIFT codes may be constituted of only a few letters and numbers, but they tell banks within the SWIFT network everything they need to know to execute international payments correctly.
These codes all follow the same format, they are 8 or 11 characters long.
4-character bank code that looks like a shortened version of the bank’s name.
2-character country code specifying the bank's country.
2-character location code expressing where the bank’s head office is located.
3-character branch code (optional) representing the branch code are an optional addition that can supplement the main 8-character SWIFT.
What is a BIC code?
A BIC code is exactly the same as SWIFT code.
When the SWIFT network was established, their members determined it was necessary to identify each of them in a standardized manner to facilitate international payments.
And to achieve that goal, they created the Bank Identifier Code, which is most commonly known as its abbreviated form 'BIC'
To receive or make a cross-border payment to ensure the funds will reach their destination safely and timely, you require a SWIFT/BIC code.