SWIFT stands for the Society for Worldwide Interbank Financial Telecommunications. It is a messaging network that banks and other financial institutions use to quickly, accurately, and securely send and receive information. SWIFT is not a financial institution or a banking system, but rather a cooperative that functions as a messaging system. It assigns each member institution a unique ID code (a BIC number) that identifies the bank name and the country, city, and branch.

Some key features of SWIFT include:

• International payments and settlements: SWIFT is the largest and most streamlined method for international payments and settlements.
• Secure messaging: Financial institutions use SWIFT to securely transmit information and instructions through a standardized code system.
• Member-owned cooperative: SWIFT is a global member-owned cooperative that functions as a messaging system.
• Widespread usage: Currently, SWIFT is used by more than 11,000 banking institutions located in over 200 countries.

SWIFT is not used to transfer money, but rather to transfer information containing detailed instructions from the paying bank to the receiving bank on what to do. It is important to note that SWIFT does not hold or transfer assets but facilitates secure, efficient communication between member institutions. Although other message services like Fedwire, Ripple, and Clearing House Interbank Payments System (CHIPS) exist, SWIFT remains dominant in the market due to its security and continually adding new message codes to transmit different financial transactions.