A UK bank is most likely to use SWIFT for what type of payment?

The most likely scenario for a UK bank to use SWIFT is when remitting funds to an overseas bank. SWIFT, which stands for the Society for Worldwide Interbank Financial Telecommunication, provides a secure network that facilitates international financial transactions between banks and financial institutions.

When a bank processes a cross-border payment, it relies on SWIFT to send payment instructions securely to the receiving bank in another country. This involves exchanging standardized messages that contain important details about the transaction, such as the amount and currency, and the involved parties' account information. The use of SWIFT is essential for ensuring efficiency and security in international payments, which is not typically needed in domestic transactions or for paying utility bills and local suppliers.

In contrast, domestic transfers, payments to suppliers, and utility bills may utilize different systems that are designed for domestic transactions and do not require the international interoperability that SWIFT offers.