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Global Work Glossary

Lost in a maze of global employment jargon? Find your way out with our handy collection of work and HR terminology

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IBAN number

What is an IBAN number?

An International Bank Account Number (IBAN) is a global system for identifying bank accounts. It was created to simplify the process of making payments throughout Europe and is now in place in 77 countries across South America, the Middle East, Asia, and the Caribbean.

An IBAN consists of a two-letter country code, a two-digit check digit that the bank will identify, and then a variable-length, country-specific bank account number. Financial institutions use specific algorithms to identify which country the account is held in and validate the accuracy of the IBAN.

One of the primary advantages of IBAN numbers is their ability to streamline international transactions by providing a standardized format that can be easily recognized and processed by financial institutions across the world. This reduces the likelihood of errors in data entry and ensures efficiency.

It’s important to note that not all countries use the IBAN system. For example, the United States uses a combination of ABA and the SWIFT systems. This means that paying a global team requires you to stay on top of different methods of payment — something that is done more easily through a global HR solution such as Multiplier.

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