swift
SWIFT is the global messaging network banks use to tell each other, safely and in a shared code, to move money from one account to another across borders.
In plain English
"Mummy, why has the money not landed since three days now?" "Ha, it is on its way o. The bank said it is with SWIFT." "What is SWIFT, is it a person?"
That conversation happens in a thousand Nigerian households whenever someone abroad sends money home and it takes longer than a WhatsApp voice note. SWIFT is not a person, and it does not actually carry the money itself. It is a messaging system that banks all over the world use to send each other secure instructions, things like send this ₦2,000,000 equivalent from this account to that one, and here are the details to make sure it lands correctly.
Think of it like a very trusted courier service for bank instructions. If your brother in London wants to send £500 to your account in Lagos, his UK bank does not throw the money into the air and hope it reaches Nigeria. His bank sends a SWIFT message to your bank, or to a correspondent bank in between, saying essentially, please credit this account with this amount, here is the reference, here is where it is coming from. Only after that message travels and gets confirmed does the actual money follow, often through separate settlement arrangements between the banks involved.
Every bank on the SWIFT network has a code, called a SWIFT code or BIC, which is like its own unique address. GTBank has one, Access Bank has one, Barclays has one. When you are sending money internationally, you are sometimes asked for this code precisely so the message reaches the correct bank and not a similarly named one in another country.
This is also why international transfers sometimes take two or three working days instead of happening instantly like a local transfer. The message has to pass through the correct banks, sometimes more than one if there is no direct relationship between the sending and receiving bank, and each one has to check and confirm before passing it along.
Chidi in Manchester sends £300 home to his mother in Enugu. His UK bank sends a SWIFT message to a correspondent bank, which passes instructions to his mother's Nigerian bank. Two days later, the ₦480,000 equivalent lands in her account, the delay being the message and settlement chain working through each stage.
Questions people ask
Is SWIFT a bank or a company that holds my money?
No, SWIFT does not hold or move money itself and it is not a bank. It is a messaging network that banks use to send each other secure payment instructions. Your money still moves through the banks and their own settlement arrangements.
Why do international transfers on SWIFT take longer than local transfers?
Because the instruction sometimes has to pass through one or more correspondent banks before reaching the final bank, and each one checks and confirms the details before passing it forward. Local transfers usually go through a direct national payment system, which is faster.
What is a SWIFT code and where do I find mine?
A SWIFT code, also called a BIC, is a unique set of letters and numbers identifying a specific bank, and sometimes a specific branch, anywhere in the world. Your bank can give you yours, and it is usually printed on your account statement or available through their customer service or app.
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