How  the SWIFT System Works?

Need to transfer money abroad?  

Today, it is easy to go to a bank and transfer money anywhere around the world, but how does that happen?  

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) system is behind most international money and security transfers.  

SWIFT is vast messaging network banks and other financial institutions use to send and receive information such as money transfer instructions quickly, accurately, and securely. 

More than 11,000 global SWIFT member institutions sent an average of 42 million messages per day through the network in 2021, representing an increase of 11.4% over 2020. 

In this article, we explore what SWIFT does, how it works, and how it makes money. 

Prior to SWIFT, Telex was the only available means of message confirmation for international fund transfers.  

Telex was hampered by low speeds, security concerns, and a free messaging format. 

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