A SWIFT code (also called BIC — Bank Identifier Code) is an 8 to 11 character alphanumeric code that uniquely identifies a bank in international transactions. When you send money abroad, the SWIFT code ensures it reaches the exact right bank and branch.
The code breaks down like this: first 4 characters = bank code, next 2 = country code, next 2 = location code, and optional last 3 = branch code. For example, HDFCINBB = HDFC Bank (HDFC), India (IN), Mumbai (BB). No branch code means the head office.
The SWIFT network connects over 11,000 financial institutions in 200+ countries, processing millions of messages daily. It does not actually transfer money — it sends secure payment instructions between banks. The actual settlement happens through correspondent banking relationships. SWIFT processed over 11 billion messages in 2023.