What is an IBAN?

An IBAN (International Bank Account Number) is an international numbering system, created to identify overseas accounts. Your IBAN is separate from your account number and sort code, it is additional information specific to your account.

What is a Named IBAN?

A named IBAN includes the account holder’s name as part of the structure, ensuring that the IBAN can be directly linked with a specific individual or business. 

Having named IBANs can help with reconciliation and operational organisation ensuring payments are streamlined through the correct account, reducing the chances of errors.

Real vs Virtual IBANs

Traditional IBANs correspond to real, physical accounts each with a unique number that identifies the account holder, bank, and country.

A virtual IBAN, or vIBAN, is not an actual account but an additional identifier that is linked to a physical account.

One major point of difference is the multi-currency capabilities. A real IBAN will often consist of a single currency, whereas receiving funds in multiple currencies would require separate IBANs for each currency.

On the other hand, virtual IBANs can be specifically designed to support multiple currencies in a single account. Upon receiving payments, a virtual IBAN can be customised to accept payments in an assigned currency and exchanged into another currency in the same account.

How do IBANs work?

IBANs provide your account with a unique, internationally recognised code to your account. This code consists of a selection of letters and numbers, formed from a combination of your account number and sort code. 

When making international transactions, this code allows overseas accounts to verify the authenticity of your account and where the transfer is coming from.

What is the difference between an IBAN and a SWIFT code?

The main difference between IBAN and SWIFT codes is what they are used to identify. A SWIFT code tells you the information for a bank, while an IBAN gives you the information for a specific account.

Example of an IBAN

The look of an IBAN can differ depending on what country your account is held in. An example of what this could look like for a UK-based account is “GB 12 ABCD 102030 12345678”. 

In this example, the first letters are the country code, the second section is the check digits, the third section is the bank identifier, and the final section is the basic bank account number.

Example of a SWIFT code

The same applies for a SWIFT code when used for international transactions, it identifies and differs depending on a specific bank and location. 

An example of a SWIFT code is HSBCGB2LXXX. In this case, HSBC identifies the receiving bank, which is HSBC Bank plc. GB represents the country code, showing that the bank is located in the United Kingdom. 

The 2L portion acts as the location code, specifying the London branch. If the code ends in XXX, it indicates the bank’s main office. This structure ensures that international financial transactions are routed accurately within the SWIFT system.

The key difference between IBAN and SWIFT codes is their purpose: IBAN identifies a specific account, while a SWIFT code identifies a bank and its location. 

IBAN formats vary by country, with a UK example being “GB 12 ABCD 102030 12345678,” where each section represents different banking details. 

SWIFT codes also differ by institution and location, such as HSBCGB2LXXX, which identifies HSBC Bank plc in London. These codes ensure secure and accurate international transactions happen as often as possible.

What do IBANs look like?

IBANs are comprised of the following four components:

• Country Code: The country code appears at the start of the IBAN. This code is used to show the country in which your account is registered. The country code will be a 2-letter code at the start of the IBAN. Some examples of country codes include SE for Sweden, EG for Egypt, and DE for Germany.
• Check Digits: Check digits are issued by the provider that your account is registered with. This is typically the following 2 numbers after the country code.
• Bank Identifier: This part of the IBAN code is used to show the provider that your account is registered with. On occasion, this code will also be used to indicate a specific branch.

Basic Bank Account Number (BBAN): The BBAN is the section of the IBAN that identifies your specific account.

Create multiple named IBANs with ONE

Open multiple accounts, named IBANs, and gain access to an online network designed to make payments simple. Use our RTFX tool to stay on top of live currency rates, and convert in 50+ currency pairs to ensure you are getting the best possible rate for your foreign exchange.

What you get:

• International accounts in multiple currencies issued in EUR, USD, CAD, CHF, PLN, NOK, DKK, SEK, CZK, HUF, RON
• Domestic EUR Accounts (SEPA Instant)
• Domestic GBP Accounts (Faster Payments, CHAPS)
• API Integration available

Get in touch with our expert team today to find out how ONE’s platform could benefit you.

IBANs FAQs

How do I find out my IBAN number?

Your IBAN can be found on your account statement alongside the account number and sort code.

When making a payment through ONE, our automatic IBAN checker reviews the input IBAN against other account details. This ensures that the payee details are fully aligned, and eliminates errors.

Is an IBAN the same as an account number?

No, your IBAN doesn’t replace your account number and sort code. Instead, it is an additional number you use when making international transactions to aid overseas banks in identifying your account.

Is it safe to share an IBAN number?

Yes, it is perfectly safe to share your IBAN. Sharing your IBAN allows someone to send funds to your account, it doesn’t allow them to take anything.