COREDO > Corporate Services > Instruments for Financial Institutions > SEPA, SWIFT and IBAN Integration for Financial Institutions

SEPA, SWIFT and IBAN Integration for Financial Institutions

Access to SEPA, SWIFT, and IBAN infrastructure is a key component of operations for EMIs, PSPs, and fintech companies. These solutions enable domestic and international payments, the provision of payment accounts to clients, and efficient participation in the global financial system.

Since 2016, COREDO has been helping financial institutions connect to payment infrastructure, providing support at every stage — from selecting the optimal setup to technical and regulatory integration.

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What Are SEPA, SWIFT and IBAN

SEPA, SWIFT and IBAN are the infrastructure through which an EMI, PSP or fintech company makes domestic and international payments and provides payment accounts to its clients. SEPA is the set of European Payments Council (EPC) schemes for euro credit transfers, direct debits and instant transfers, all using the ISO 20022 message format. SWIFT is the global network of international correspondent banking, and IBAN is the global standard for the account numbers an institution issues to its clients. Integration is in demand primarily among the following types of organisations:

Electronic money institutions (EMI) — to offer full-featured payment accounts with IBAN, credit transfers and direct debits to clients across the entire EU.

Payment institutions (PSP, PI) — to comply with the new requirements of Regulation (EU) 2024/886, in particular the mandatory offering of SCT Inst and fulfilment of VoP obligations.

Neobanks and fintech start-ups — when launching a proprietary payment product where IBAN availability and the ability to process SEPA transfers are mandatory functionality.

Investment firms (MiFID II) — to arrange settlements with clients and counterparties through correspondent banking relationships via SWIFT.

Foreign exchange companies (Forex) — when requiring direct SWIFT access for settlements with partner banks.

Global Coverage: SWIFT and IBAN Beyond the EU

While SEPA is EU/EEA-specific, SWIFT and IBAN operate as global financial standards. SWIFT maintains connections with financial institutions in over 200 countries, making it the backbone of international correspondent banking regardless of geographic location. IBAN is similarly used in more than 80 countries worldwide, extending far beyond European borders.

COREDO facilitates SWIFT and IBAN integration for financial institutions licensed outside the EU, including:

United Kingdom — Post-Brexit, UK financial institutions (regulated by FCA) continue to use SWIFT, IBAN, and Faster Payments for domestic and cross-border transfers, with COREDO supporting connectivity to global correspondent networks.

Singapore — Singapore-based institutions (regulated by MAS) leverage SWIFT for international settlements while using PayNow for domestic instant payments; COREDO advises on dual-rail payment infrastructure.

United Arab Emirates and Dubai — UAE-licensed entities (regulated by DFSA/CBU) use SWIFT globally while maintaining local instant payment systems; COREDO facilitates integration with regional and international networks.

Canada — Canadian payment institutions (MSB-licensed under FINTRAC) utilize SWIFT for correspondent banking and Interac for domestic real-time payments; COREDO supports cross-border integration.

Switzerland — Swiss financial institutions (regulated by FINMA) use SWIFT internationally, IBAN domestically, and maintain access to SIC/euroSIC; COREDO advises on Swiss and international connectivity.

COREDO supports non-EU licensed entities in establishing SWIFT direct membership, integrating IBAN systems where applicable, and building cross-border payment infrastructure that complies with their respective jurisdictional regulators while maintaining international standards.

Requirements and Integration

Before commencing technical integration, the following prerequisites must be in place.

Regulatory status.

Connectivity to SEPA and SWIFT requires a valid licence — EMI or PSP — issued by a regulator in one of the EU/EEA countries. Without an EMI licence (under Directive 2009/110/EC) or a payment institution licence (under PSD2, Directive (EU) 2015/2366), direct participation in EPC schemes is not available.

Operational infrastructure.

For direct SEPA participation, readiness is required for connection through a certified connectivity provider, ISO 20022-compatible transaction processing systems, liquidity management policies, and a disaster recovery plan with geographically distributed sites.

Correspondent banking relationships.

To obtain a BIC and participate in SWIFT, a correspondent bank is required. The choice of correspondent affects the available currencies, settlement geography, and overall transaction costs.

AML/KYC compliance.

The EBA and national regulators require SEPA and SWIFT participants to maintain a functioning anti-money laundering system, including sanctions list screening at least once per day (a requirement that entered into force on 9 January 2025 under Regulation 2024/886).

How It Works: Technical Overview

SEPA schemes.

The European Payments Council (EPC) has developed and maintains three core schemes: SEPA Credit Transfer (SCT), SEPA Direct Debit (SDD Core and SDD B2B), and SEPA Instant Credit Transfer (SCT Inst). All schemes use the ISO 20022 message format. Under Regulation (EU) 2024/886, all PSPs and EMIs offering standard SEPA transfers must connect to instant payments (execution within 10 seconds, around the clock, 365 days a year) by 2027, and comply with the Verification of Payee (VoP) requirement from 9 October 2025.

Direct and indirect SEPA participation.

A direct participant connects independently to the settlement system (TARGET2/TIPS, RT1) through a certified connectivity provider (SWIFTNet or SIA/Nexi). This requires technical infrastructure, a licence in one of the SEPA countries, and compliance with EPC liquidity requirements. An indirect participant uses a settlement account at a sponsor bank and processes transactions through it — which is the more common model for new EMIs and PSPs.

SWIFT connectivity.

EMIs and PIs can become direct SWIFT members by meeting the criteria for the “Supervised Financial Institutions” user category. This requires regulatory status (an EMI or PSP licence), compliance with SWIFT’s Customer Security Controls Framework (CSCF), and a correspondent bank for clearing transactions. Without the latter, direct SWIFT participation is technically impossible even with a BIC code.

IBAN issuance.

The ability to issue IBANs directly to clients depends on the operating model: direct SEPA participants or institutions with central bank access issue IBANs independently; with indirect participation, IBANs are issued under an agreement with the sponsoring bank. This IBAN also falls within the scope of Regulation 2024/886 regarding instant payments for euro transfers.

Pricing

The cost of SEPA, SWIFT and IBAN integration support is calculated individually. The final cost depends on the organisation’s current regulatory status, the chosen connectivity model (direct or indirect participation), the need to identify a correspondent bank, and the scope of legal and technical support required.

Contact COREDO for a cost calculation and commercial proposal.

Connection Process

COREDO provides comprehensive support at every stage of SEPA, SWIFT and IBAN integration:

Current status audit.

COREDO specialists analyse the client’s existing regulatory status, operational structure and desired payment system participation model, and then formulate a detailed integration plan.

01

Connectivity model selection.

COREDO helps assess the feasibility of direct versus indirect SEPA participation, weigh operational costs and timelines, and identify a sponsor bank or settlement bank suited to the client’s specific business requirements.

02

SWIFT membership preparation.

COREDO’s legal experts support the BIC code application process, advise on meeting CSCF requirements, and help establish correspondent banking relationships.

03

Compliance with new regulatory requirements.

COREDO monitors changes in European payment legislation — including the instant payment and VoP requirements of Regulation (EU) 2024/886 — and helps adapt operational processes within the required deadlines.

04

Regulatory liaison.

Where necessary, COREDO supports communication with national regulators and the EPC in the context of obtaining approvals and authorisations related to expanding payment infrastructure.

05

Connecting through a sponsor bank can take between 4 and 12 weeks. Direct SEPA participation and SWIFT membership require anywhere from several months to half a year, taking into account technical preparation and compliance checks.

Our Experts

Your SEPA, SWIFT and IBAN integration project will be led by COREDO specialists with extensive experience working with financial institutions across the EU.

Alena Mach

Executive Director

Nikita Veremeev

Founder & NED

Pavel Kos

Head of Legal at COREDO. Specialises in regulatory support for financial licences, payment institutions and EMIs. Has been with COREDO since 2017.

Gregory Lutsenko

Head of Compliance

Frequently Asked Questions

Is an EMI or PSP licence required to connect to SEPA?

Yes. Direct or indirect participation in EPC schemes requires a valid EMI licence (Directive 2009/110/EC) or payment institution licence (PSD2, Directive (EU) 2015/2366), issued by a regulator in one of the EU or EEA countries. Without regulatory status, connection to SEPA is not possible.

What is the difference between direct and indirect SEPA participation?

With direct participation, the organisation connects independently to the settlement system (TIPS, RT1) through a certified network provider. With indirect participation, it processes transactions via a settlement account at a sponsor bank. The indirect model is simpler and faster to implement; the direct model is more independent and scalable.

Can an EMI obtain its own BIC code and connect to SWIFT?

Yes, an EMI can become a direct SWIFT user by qualifying as a “Supervised Financial Institution”. This requires a licence, compliance with CSCF requirements, and a correspondent banking relationship — without the latter, clearing through SWIFT is not possible.

What changed for PSPs and EMIs with the adoption of Regulation (EU) 2024/886?

The Regulation requires all PSPs and EMIs offering standard SEPA transfers to also offer instant payments (SCT Inst) at the same price. For EMIs and PIs, the deadline for connecting to SCT Inst is 2027. The Verification of Payee (VoP) requirement applies from 9 October 2025.

Is SWIFT membership mandatory for conducting international settlements from the EU?

SWIFT is the de facto standard for international interbank settlements. An alternative is to maintain correspondent relationships through an intermediary bank without direct SWIFT membership — however, this limits the scope for scaling international operations.

How long does SEPA and SWIFT integration take?

Timelines depend on the chosen model and the organisation’s current regulatory status. Connecting through a sponsor bank can take between 4 and 12 weeks. Direct SEPA participation and SWIFT membership require anywhere from several months to half a year, taking into account technical preparation and compliance checks.

Can non-EU licensed financial institutions obtain SWIFT membership and IBAN connectivity?

Yes. While direct SEPA participation requires an EMI or PSP licence issued by an EU/EEA regulator, SWIFT membership is available to supervised financial institutions globally. Likewise, IBAN systems are operational in over 80 countries worldwide. Non-EU licensed entities (e.g., FCA-regulated UK entities, MAS-regulated Singapore entities, FINTRAC MSB-licensed Canadian firms, DFSA-regulated UAE entities, or FINMA-regulated Swiss institutions) can establish direct SWIFT membership and integrate IBAN infrastructure for international and domestic payments. COREDO has supported cross-border integration for such entities since 2016.

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Ready to discuss SEPA, SWIFT and IBAN integration for your organisation?

COREDO specialists provide a free initial consultation: they assess the current status, propose the optimal connectivity model, and provide an implementation plan in accordance with applicable regulatory requirements.

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