Banking has changed over the years to keep in line with modern technology. You've probably already noticed that your bank uses other numbers aside from your account number to identify you. One of those numbers is the bank's routing number, which works for banks like a street address works for the postal service. When you have a routing number you can find a bank by routing number simply by inputting the number into their system. Since no two banks will have the same routing number, getting money transferred from one person to the next can happen in a matter of seconds as opposed to days as it once did.
For Individuals
But what about if an individual needs to locate a specific bank for one reason or another; perhaps to look up the financial institution's routing number to transfer funds or to receive funds. This can also be done very simply. If you go to The American Bankers Association website you will be able to find the information you need. You will first need to agree to the Terms and Conditions of the site. Once you've agreed, you'll be directed to a page that will assist you to find bank by routing number. On this page, you will have the option to put in the routing number of the bank you're looking for or the name and address of the bank. Once you've put in the data you have, the server will provide you with the information you need.
Types of Routing Numbers
Every bank has more than one kind of routing number. The nine-digit number is unique to every financial institution and the type of transactions they are set up to do. The most common type of routing number is the ACH, which is the means that many people use to send wire transfers from one location to the next. Each routing number a bank has is there to cover a specific purpose. So, if you're looking up a routing number online make sure that you choose a number that is set up for the kind of transaction you want to do.
Routing Numbers and Swift Codes
If you are involved in international banking at all, you've probably heard the term "swift code" from time to time. In most parts of the world, financial institutions do not use routing numbers; instead they use what are called swift codes, which work in much the same way as routing numbers, except they are for international transactions. If you plan to transfer money to someone in another country, you will not try to find bank by routing number but will use the swift code instead.
It's true, financial institutions have always had a unique way of communicating with each other. For the most part, it is done through the bank's routing number. Just remember, if you need to locate a bank to perform a specific transaction, it is important for you to use the correct number to make sure that your transaction doesn't get lost or sent someplace else. The process of retrieving money from the wrong institution could be a long and arduous one.