The SWIFT code is a unique identification code that plays a crucial role in the global financial system. It enables the efficient and accurate processing of cross-border transactions. As a business owner, you probably know that simplicity and security have become essential in global transactions.
This article explains in detail what a SWIFT code is and what functions it has in financial transactions. You will also learn about the format of a SWIFT code and how you can use it for international money transfers.
What is a SWIFT code?
A SWIFT code (Society for Worldwide Interbank Financial Telecommunication code) is a unique identifier for banks or financial institutions worldwide that is used for international transactions. It is issued by the SWIFT network, a global financial messaging system headquartered in Belgium, and ensures secure and reliable communication. The SWIFT code is also known as the Bank Identifier Code (BIC).
The purpose of the SWIFT code is to simplify international financial transactions. It ensures that users send money or financial information securely and efficiently to the correct institution. Without a SWIFT code, cross-border money transfers would be complicated and time-consuming.
For banks, connecting to the SWIFT network means that they can connect with other banks worldwide, reducing the risk of transfers and lowering the cost of international payments.
Here you can find examples of SWIFT codes for banks in Indonesia:
- Bank Central Asia (BCA): CENAIDJA
- Bank Rakyat Indonesia (BRI): BRINIDJA
- Bank Mandiri: BMRIIDJA
- Bank Negara Indonesia (BNI): BNINIDJA
- Bank Tabungan Negara (BTN): BTANIDJA
Functions of a SWIFT code
As already mentioned, the SWIFT code is a key component for the smooth processing of cross-border transfers. Below you will find the functions of a SWIFT code that you should know:
1. Accurate identification of banks
One of the main functions of a SWIFT code is to verify the identity of a bank. With a SWIFT code, bank information can be identified more quickly and accurately, speeding up the transfer process. The code helps to reduce the risk of transfer errors by allowing accurate identification of banks and their branches.
2. Facilitating international financial transactions
SWIFT codes enable the efficient transfer of money or payments between countries. Without this code, it would be difficult for the international banking system to route funds to the correct bank. Using the SWIFT code, banks can automatically identify the destination institution, simplifying transactions without the need for additional complex information.
3. Ensuring transaction security
As a standardized international code, the SWIFT code operates in an encrypted and secure communication network. This minimizes the risk of transfer errors, data breaches or misdirected funds. It also verifies that the financial institution receiving the transaction is valid and registered in the SWIFT system, reducing the likelihood of unauthorized transactions.
SWIFT code bank format
The format of a SWIFT code consists of 8 or 11 alphanumeric characters. Each part of the code has a specific meaning that uniquely identifies the bank, country, location and branch within the international financial system. Below you will find a detailed explanation:
1. Characters 1-4 (bank code)
The first four characters represent the bank's unique code, usually an abbreviation of the bank's name:
- BNIN: Bank Negara Indonesia
- BRIN: Bank Rakyat Indonesia
- CENA: Bank Central Asia
- BMRI: Bank Mandiri
2. Characters 5-6 (country code)
The next two characters indicate the country in which the bank is located:
- ID: Indonesia
- US: United States
- SG: Singapore
3. Characters 7-8 (location code)
The following two characters indicate the location or city of the bank's headquarters. For example, a bank headquartered in Jakarta could use the code JA.
4. Characters 9-11 (branch code)
The last three characters indicate the branch of the bank processing the transaction. Below are examples of complete SWIFT codes with "XXX" as a placeholder for branch codes:
- BNINIDJAXXX: Bank Negara Indonesia, Indonesia, Jakarta (Head Office)
- BRINIDJAXXX: Bank Rakyat Indonesia, Indonesia, Jakarta (head office)
- CENAIDJAXXX: Bank Central Asia, Indonesia, Jakarta (Head Office)
- BMRIIDJAXXX: Bank Mandiri, Indonesia, Jakarta (Head Office)
How the SWIFT code works
To better understand how SWIFT codes facilitate international transactions, the following explains how they work:
The customer initiates a bank transfer
The sender provides the recipient’s SWIFT code to their bank, along with other transaction details such as the recipient's amount, currency and account information.
The bank sends the payment instructions
The sender’s bank uses the SWIFT network to send the payment instructions, which contain the transaction details and the SWIFT code of the recipient's bank.
SWIFT network encrypts and processes the instructions
The SWIFT network encrypts the payment instructions and forwards them securely to the recipient bank. Encryption ensures the security and protection of the transaction data.
SWIFT forwards the payment instructions
As an intermediary, the SWIFT network connects the sender's bank with the recipient’s bank and ensures that the payment instructions reach their destination exactly.
The recipient bank checks and processes the payment
After receiving the instructions, the recipient's bank validates the transaction data and credits the amount to the recipient’s account.
Confirmation of the transaction
The recipient bank sends a confirmation via the SWIFT network to the sender’s bank stating that the transaction has been successfully completed.
How to find a SWIFT code
A bank’s SWIFT code is easy to find as this information is often publicly available, especially for international transactions. Here are some ways to find it:
Visit the bank’s website
Look for the SWIFT code in the information on international transfers or in the Frequently Asked Questions (FAQ) section.
Contact customer service
Contact the bank’s customer service by phone, email or in person to request the SWIFT code.
Use an online SWIFT code finder
Several online tools and websites offer SWIFT codes for banks worldwide. For example, you can explore SWIFT codes for Indonesian banks on Aspire’s SWIFT code checkers.
How to transfer money with a SWIFT code
Once you have received the relevant SWIFT code, you can initiate a transfer using one of the following methods:
1. Visit a bank branch
For larger transactions or if you need help, visit your bank branch. Make sure that the branch offers foreign exchange transactions. Fill out the necessary forms with details such as the recipient’s name, bank, account number and SWIFT code. Present the forms to the bank staff to process the transfer.
2. Use mobile banking or internet banking
It's easier if you use your bank’s app for mobile or online banking. Navigate to the section for international transfers, often under categories such as "Foreign currency transfer" or "International transfer" Enter the SWIFT code and transaction details to complete the transfer.
3. Use international money transfer services
Services such as Western Union or PayPal can facilitate international transfers. These platforms have an extensive global network, but may charge higher fees compared to direct bank-to-bank transfers.
4. Use online money transfer platforms
Online platforms can offer competitive fees for sending money internationally. They are usually connected to the SWIFT network and enable secure and fast transfers. Choose a reliable and secure platform to ensure smooth transactions.
Make international transfers more efficient and secure with Aspire
International transfers and payments are essential for businesses, especially those that have expanded their operations around the world.
However, traditional international money transfer methods come with a number of challenges, including high fees. This can become a burden if your business frequently sends money abroad.
Luckily, Aspire’s Business Account offers a solution to this problem.
With Aspire, you can make international payments in over 30 currencies to more than 130 countries at competitive rates and low fees. In addition, Aspire’s multi-currency account allows you to make free local transfers in USD and SGD.
Aspire also allows SWIFT transfers with fees starting at just US$8 and same-day transfers in over 15 currencies.
Aspire offers many other premium features to help you manage your business finances effectively, including Payment Gateway, Corporate Cards and Expense Management.
Want to find out more? Contact our team today!
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
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