IBAN (International Bank Account Number) is an international standard numbering system specifically designed to identify bank accounts involved in cross-border transactions. Unlike SWIFT codes which only identify banks, IBANs can pinpoint specific accounts within banks and are widely used in international remittances across the EU and other European regions.

A standard IBAN consists of up to 34 alphanumeric characters, starting with a two-letter country code. Each character serves to identify specific account information, ensuring accuracy in transactions.

In international bank transfers, IBAN plays at least three crucial roles: First, it helps financial institutions quickly identify the recipient's country; second, it confirms that funds are being sent to the correct account within that country; and finally, it provides financial institutions with a simple and efficient way to verify account information before transfer, significantly improving transfer success rates. Missing any of these elements may result in blocked cross-border transfers or failed transactions.

IBAN numbers vary according to country or region standards, typically consisting of letters and numbers, with each IBAN corresponding to a unique bank account. IBAN contains all key information needed for cross-border transfers, including country code, check digits, bank code, branch code, and account number.

SWIFT codes, IBANs, and Routing Numbers are all bank identification codes used for international wire transfers, but standards vary by region. Routing Numbers are primarily used in the US and North America for local ACH payments or wire transfers to identify banks. IBANs are mainly adopted by European banks, initially issued by European banks and gradually promoted globally. In regions outside North America and Europe, SWIFT codes are typically used as the primary bank identification method.