SWIFT was founded in 1973 by banks to replace telex for standardized cross-border payment instructions.
SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication. The cooperative was created by banks seeking a secure, automated, and standardized way to exchange financial messages internationally. Its founding members came from Europe, North America, and elsewhere.
SWIFT messages instruct financial institutions about payments and other transactions, but SWIFT itself generally does not hold customer deposits or settle funds. The actual movement of money occurs through correspondent banks and payment systems.
SWIFT is often confused with an international transfer network that directly carries money. It is more accurately described as a financial-messaging system. Its standardized identifiers and message formats help institutions communicate consistently across borders.