SWIFT was founded in 1973 to standardize international bank communications.
The Society for Worldwide Interbank Financial Telecommunication was created by banks that needed a secure, consistent way to exchange payment instructions across borders. It began with 239 banks from 15 countries and was established as a cooperative organization in Belgium.
SWIFT does not normally move money itself. Instead, it transmits standardized messages that tell financial institutions how to process transfers, securities transactions and other financial operations. This distinction is often missed because people commonly describe a SWIFT payment as though SWIFT directly holds or transfers the funds.
The network became operational in 1977, replacing older systems based heavily on telex. Its standardized message formats and later BIC identifiers helped banks communicate more reliably as international finance expanded.