Whilst a SWIFT/BIC code is used to identify a particular bank during an international transaction, an IBAN identifies the individual bank account involved in the international transaction. Both SWIFT/BIC codes and IBANs are essential components of the process by which individuals are able to transfer money overseas.

A SWIFT/BIC code consists of 8-11 characters and follows a format that identifies your bank, country, location, and branch. For example, BUKBGB22.

An IBAN is made up of a maximum of 34 alphanumeric characters, which consists of country code, check digits, bank identifier, sort code and account number. Your IBAN will look like this: GB29 NWBK 6016 1331 9268 19.

IBAN plays a crucial role in facilitating transfers through the SWIFT system. It is independently used for transfers outside of the SWIFT banking system. For instance, you may use the IBAN bank code for transfers within the European SEPA system or between accounts within the same bank.

SEPA, on the other hand, is a transfer system that operates within a limited international scope.