A routing number, commonly known as a bank routing number or ABA (American Bankers Association) routing number, is a nine-digit code that identifies the financial institution a particular bank account belongs to. It is equivalent to a postal code but for financial transactions. For instance, PNC Bank’s routing number is 043000073.
Routing numbers are crucial for electronic fund transfers, ensuring that funds are securely and efficiently routed to the intended recipient. They facilitate transactions such as wire transfers, direct deposits, and automated bill payments. Historically, routing numbers were standardized in the mid-20th century to streamline the processing of paper checks, and they continue to be essential in modern electronic banking systems.
