International Bank Account Number (IBAN)

What is an IBAN?

An International Bank Account Number (IBAN) is a standardized identifier for bank accounts used mainly to facilitate and verify international payments. It ensures that cross-border transfers include the correct country, bank and account details, reducing errors, delays, and rejected payments.

IBAN structure

An IBAN consists of:
* A two-letter ISO country code (e.g., GB, FR, DE)
* Two check digits used to validate the number
* A Basic Bank Account Number (BBAN) — up to 30 alphanumeric characters whose format is defined by each country

Total length varies by country but can be up to 34 characters. Example (hypothetical Finland IBAN):
FI21 1234 5698 7654 3210
– FI = country code
– 21 = check digits
– remaining digits = BBAN (bank and account details)

How IBANs are used

• IBANs identify the specific account involved in an international transfer.
• They are provided by the account holder or the receiving bank when you need to send or receive money across borders.
• Banks use the check digits and country-specific BBAN format to validate account details before processing payments.

IBAN vs. SWIFT/BIC

• IBAN identifies an individual bank account.
• SWIFT code (also called BIC) identifies a specific bank or branch.
  Both are commonly used together: IBAN for the recipient account and SWIFT/BIC to route the payment to the correct bank network.

Who uses IBAN?

IBAN was introduced in Europe and has since been adopted by many countries worldwide (over 80 countries use IBAN). Some major countries, such as the United States and Canada, do not use IBAN domestically; they rely on other routing systems (though they recognize IBANs for incoming international payments).

Why IBAN was created

IBAN was developed to:
* Standardize account identification across countries
* Reduce errors and rejected cross-border payments
* Improve automated processing of international transfers

Standards and evolution

The IBAN format is defined by ISO standards (ISO 13616) with updates to harmonize length, character case, and processing requirements. Individual countries’ banking authorities decide the exact BBAN format within those rules.

How to get an IBAN

• If your bank operates in an IBAN-using country, your bank can provide your IBAN (often shown on statements or accessible online).
• When sending international payments, request the recipient’s IBAN and their bank’s SWIFT/BIC to ensure accurate routing.

Practical tips

• Always copy IBANs exactly as provided — spacing is allowed for readability but is ignored during processing.
• Use the check digits or your bank’s validation tools to detect entry errors before sending large transfers.
• For transfers to countries that don’t use IBAN, obtain the SWIFT/BIC, account number, and any required routing codes (e.g., routing transit numbers).

Key takeaways

• IBAN standardizes the identification of bank accounts for international transfers.
• It consists of a country code, two check digits, and a country-specific BBAN.
• Used together with SWIFT/BIC codes, IBANs help ensure faster, more accurate cross-border payments.