The acronym S.W.I.F.T stands for Society for World Interbank Financial Telecommunication. SWIFT is a non-profit messaging service-type organization with its headquarters located in Belgium. One can find SWIFT offices in the developing markets and the world’s major financial centres. SWIFT is member owned and its membership consists of financial institutions.

Origin

The origin of SWIFT came out of the need for security for interbank communications and transfer of funds and securities. As a messaging service, SWIFT is a carrier of financial data, transporting messages from one financial institution to another. This activity is secure and confidential which is why several banking organizations entrust their financial messages to SWIFT.

Services

SWIFT provides the propriety communications platform, products and services that allows its customers to connect and exchange financial information securely and reliably. It is the medium through which the financial community can collaboratively work to shape market practices, define standards and resolve issues of mutual interest. This service is also fast and effective and efficient.
By offering its customers the luxury of automating and standardizing their financial transactions SWIFT eliminates inefficiencies from their operations, lowers costs and reduces operational risks. SWIFT customers also have the opportunity to create new business opportunities and revenue streams.

Description of a SWIFT

A SWIFT that is being sent from one bank to another consists of a one page document and includes the following:

• Name and code of the sending bank
• The date and time
• The address and code of the receiving bank
• The name and internal code of the officer initiating the transmission
• The names and numbers of the accounts involved in the transfer
• Description of the asset being transferred
• The numeric category of the transmission
• Detail of the required phrases

Messages within a SWIFT

SWIFT messages are categorized and specified in numeric order. These messages are based on different types of wire transfers that are based on conditions established by the sender of the message, therefore each number deals with various types of transactions. For example messages categorized under MT300 have to do with Foreign Currency Exchanges. These categories and established conditions are preset which means that according to SWIFT standards and regulations, instructions must be in sync with the preset messages. This will allow for clarity between the sending and receiving financial institutions. SWIFT is unique in that its sole objective is to transport financial data on behalf of its customers, a method which ensures the confidential and safe delivery of data to the intended recipient(s). Companies who wish to be connected with the SWIFT family need to provide adequate information on their mode of operations and other pertinent information before placing an order or joining them.