SWIFT is a global messaging network that connects financial institutions worldwide, enabling secure communication for international transfers.
Advantages of SWIFT:
Global reach: Connects over 11,000 financial institutions in 200+ countries.
Security: Uses advanced encryption and authentication measures.
Standardization: Streamlines communication between institutions.
Disadvantages of SWIFT:
Speed: Takes longer than domestic transfers due to intermediary banks.
Cost: International transfers can be expensive due to intermediary fees.
Exchange rate fluctuations: Can impact the final amount received.
SWIFT is ideal for secure and standardized international transactions.