IBAN Guide

Originally developed to streamline cross-border payments and reduce errors, the IBAN provides a consistent format that banks and financial institutions use to ensure that funds are directed to the correct accounts.

The International Bank Account Number (IBAN) is a standardized system for identifying bank accounts across national borders. Originally developed to facilitate cross-border payments and reduce errors, the IBAN provides a consistent format that banks and financial institutions use to ensure that funds are directed to the correct accounts.

What Is An IBAN?

An IBAN is a unique identifier for a specific bank account within a certain country and is recognized internationally. It comprises a series of alphanumeric characters that include:

• Country Code - A two-letter code representing the country where the bank account is held.
• Check Digits - Two numbers that help verify the accuracy of the IBAN.
• Basic Bank Account Number (BBAN) - A series of characters that uniquely identify an individual bank account, including bank and branch identifiers.

The IBAN structure is defined by the ISO 13616 standard, and while the maximum length can be up to 34 characters, each country has its specific length and format.

IBAN Example

IBAN formatting can vary slightly from country to country, however, a common IBAN looks like this:

GB29 NWBK 6016 1331 9268 19

• GB - The country code for the United Kingdom.
• 29 - The check digits.
• NWBK - The bank identifier is sometimes seen in number format.
• 601613 - Bank Branch Code, also known as the Sort Code.
• 31926819 - Bank account number.

Why Are IBANs Used?

• Error Reduction - The inclusion of check digits in the IBAN helps detect and prevent errors during data entry or transmission, ensuring that payments reach the intended account.
• Streamlined Cross-Border Transactions - With a standardized format, the IBAN facilitates efficient international transfers by providing a clear and consistent method for identifying bank accounts across different countries.
• Enhanced Transparency - Banks and businesses can quickly validate the format of an IBAN, reducing processing delays and improving overall transaction transparency.