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What is the SWIFT Banking System: How Does It Work?

Mar 26, 2024

What is the SWIFT Banking System: How Does It Work?

The SWIFT banking system is a global banking network. It is a system that facilitates digital transfers between financial institutions and banks.

SWIFT is an abbreviation for ‚ÄúSociety for Worldwide Interbank Financial Telecommunication‚ÄĚ. International digital asset transfers are made through these systems.

Basically, the way it works is to confirm that the money sent is suitable for use in the sender's online bank account and perform the transfer. It is a frequently used transfer method in today's modern economic world.

What is the SWIFT Banking System?

The SWIFT Banking System is an international network system. It provides secure delivery of financial institutions' information or data. It has the most comprehensive bank communication network in the world.

It delivers the messages of the users according to the principles of reliability and privacy. It is widely preferred in both personal and commercial transactions. It is a valid method for asset transfer.

When you want to send the amount in a bank account to a recipient who has an account in another bank, the sending bank sends a message through the receiving bank's SWIFT system and inquires whether the accounts are suitable for this transfer.

After this messaging process, the transfer is made with confirmation. In the SWIFT system, this whole process takes place in seconds.

How the SWIFT Banking System Works?

SWIFT is a global banking system that enables financial institutions around the world to send and receive data or messages about asset transfers and other financial transactions. In summary, it is used to send instructions about transactions. The SWIFT system is one of the most reliable methods available. When you want to make an asset transfer or other type of financial transaction, your bank as the sender uses the SWIFT system to send a message to the recipient's bank with details about that transaction.

This process takes place within seconds and the transaction is completed after your approval. Undoubtedly, technological revolutions have had lasting effects on the world economy.

Cryptocurrencies, which have just recently entered our lives, are now an asset form accepted by the SWIFT system. Platforms, where cryptocurrencies are traded, are accepted among financial institutions. Trade or transfer transactions made with cryptocurrencies are approved on the SWIFT network and are considered valid.

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How Do I Use SWIFT Payments?

There are only a few basic requirements to make a SWIFT payment or receive a payment: - Your bank's name and BIC code (Swift code), the recipient's bank information, the amount and unit of money to be transacted, and finally, the account number will be sufficient.

As Jetonbank, we are also working according to the SWIFT system and all your assets transfers and transactions in this network can be carried out successfully.

Money transfers are not only between banks, many transfers are performed from one bank to another financial institution.

The SWIFT system provides communication between these two different institutions and the transfer is realized with the entity in different contexts approved. Often this information is recorded by your banks and is not expected to be provided every time. This process takes place in seconds with verified mobile phone applications.

Which Countries are in SWIFT?

SWIFT is a global financial institution that provides a messaging network for fund transactions. This system contains banks and other new financial institutions.

It is a worldwide network that includes almost all official banks and other financial institutions from more than 200 countries. SWIFT in almost all 5 continents and in a capacity that includes the entire online network, from the world's leading countries to the economically smaller ones.

As Jetonbank, we are also in the network of the SWIFT system that covers almost the whole world. We cooperate with other financial institutions such as banks and cryptocurrency networks with our experienced teams in the field of finance that we have been serving for years.

It can be said that a few countries have not joined the system, such as Iran, North Korea, and Cuba for particular political reasons.

Who Controls SWIFT payment?

SWIFT payments are transactions that are confirmed upon communication between two government agencies. For this reason, it should be audited by states or institutions including the relevant banks.

It is impossible for illegal entities to enter the SWIFT system. Financial institutions that are not licensed by the official institutions of the countries, such as the banks' association, cannot benefit from this system.

Rather than being managed by an organization or authority, SWIFT is a system regulated by the laws of its member countries. At Jetonbank, we serve our valued customers in different parts of the world, both in the SWIFT network and in other communication networks.

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IBAN vs. SWIFT Code: What's the Difference?

IBAN is one of the most common concepts in today's asset transfers. IBAN, which stands for International Bank Account Number, represents the personal bank information of individuals.

But SWIFT codes determine the specific identities of the two institutions such as banks or cryptocurrency platforms where the transaction is made.

In short, while IBAN code is created for users, SWIFT codes are used by banks or financial institutions.

How Does SWIFT Make Money?

A SWIFT banking transfer costs different commission fees based on the value of the asset being sent.

For example, while this transaction cost is free between customers of the same bank in the same country, the cost of a high-value money transfer between two different institutions in two different countries will also be high.

At Jetonbank, we are ready to assist you, our valued customers, in your commercial or personal economic transactions with any region of the world.

Jetonbank SWIFT Services

It can be said that Jetonbank is one of the world's most successful brands of SWIFT services. SWIFT (Society for Worldwide Interbank Financial Telecommunication) determines the international standards for banking networks and communication.

Jetonbank's SWIFT services provide you to send and receive asset transfers fast and safely in this perspective. With our SWIFT services, you can be sure that your transfers will be done securely all the time.

* The opinions expressed in this blog are solely those of the author and should not be regarded as expert financial advice. Before engaging in trading, you should consult an independent and suitably licensed financial advisor to ensure that you understand the risks and have the necessary experience and knowledge. Under no circumstances will Jetonbank be liable for any direct, indirect, special, consequential, or incidental damages. Also, Jetonbank is not responsible for any losses that may arise from reliance on any recommendation, forecast, or other information provided. Past performance does not predict future results. The value of investments can fall as well as rise. We value your participation in our discussions and welcome diverse viewpoints.
Thank you for your engagement.

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