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SWIFT Source: Functions and How It Works

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What is swift source (code) and what is the function of swift source? Let’s see the answer here!

Currently the development of digital technology is growing rapidly every year. As in the financial sector, the impact of these technological developments makes financial transactions easier. For example, transfer abroad using a swift code. SWIFT code or SWIFT code is a unique code from a bank to be able to make transactions abroad.

The role of the SWIFT code is as a communication network used by banks or other financial institutions. In addition, this code has the ability to send and receive money transfer information safely, quickly, and accurately. Well, this time OCBC will discuss the meaning, function, workings, as well as a complete list of bank SWIFT codes. Let’s see the following!

What is SWIFT Code?

The Society for Worldwide Interbank Financial Telecommunication or abbreviated as SWIFT code is a unique code from a particular bank and consists of several letters that are useful for transactions from within to abroad and vice versa.

SWIFT code is a standard format for bank identification code (BIC) which is commonly used by banks or other financial institutions as an identification tool on an international scale. But uniquely, this code can show who and where the location of the bank is, and you could say the SWIFT code is almost like a telephone code or postal code.

The most important thing you need to know about the SWIFT code is that it offers security in financial transactions through banks or other financial institutions. In addition, this financial transaction security service is also intended for mobile banking, core banking, and so on. All of these services are, of course, supported by the latest technology, so their security is guaranteed.

This financial security institution headquartered in Belgium also has branch offices that are only spread in a few countries, especially the country as a center for global financial transaction activities. In the process, the SWIFT code is a number of codes and also the identity of a bank or financial institution and is collected to become a SWIFT member.

By joining a bank with SWIFT, they will get many conveniences, because financial transaction activities at the bank can run more efficiently. Another advantage for banks that have a SWIFT code is that they can minimize operational risk, reduce costs, as well as standardize and optimize financial transaction activities.

SWIFT Code function

The main function of the SWIFT code is to carry out financial transactions at banks internationally. When you want to send or take money from abroad, be it a bank transfer or credit card, you need to use this code as a verification tool. If you do not use the SWIFT code, the transaction will fail.

Generally, the location of the SWIFT code is in front of the bank account number. For example, SWIFT code + destination bank account number. SWIFT codes usually consist of 8 to 11 characters of unique letters or numbers whose length is adjusted to international standards. Therefore, each bank must have a different SWIFT code.

For example, a SWIFT code with 11 characters, the code is composed of; The first 4 characters are the bank code, the next 2 characters are the country code, the next 2 characters are the bank location code, and the last 3 characters are the branch code and are optional.

How SWIFT Code Bank Works

For example, you are a customer of Bank X, living in Bandung. You want to send some money to your sister who is in Singapore and has an OCBC Bank account in Singapore. The first thing for you to do is go to the nearest Bank X branch office with your sister’s account number along with the Bank OCBC Singapore SWIFT code.

Bank X will send a transfer instruction message to Bank OCBC Singapore via the SWIFT network system. After Bank OCBC Singapore receives the SWIFT message, then Bank OCBC will process the settlement and debit the remittance to your sister’s account.

You need to remember that the SWIFT code is a communication network code that only connects transactions between banks internationally. Thus, the SWIFT code does not hold any securities or funds and also does not have any bonds such as to manage customer accounts.

This is a discussion about the definition of a complete list of SWIFT codes for banks in Indonesia. OCBC friends need to know, Bank OCBC NISP Indonesia itself has the swift code NISPIDJA. With a SWIFT code, of course, it will be easier for you if you want to make transactions abroad.

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