5 Biggest Financial Translation Challenges and How to Solve them

Competition in the global market is fierce, and there is no time for companies to be spending tons of resources on language challenges and translation. Firms have to be efficient through all global operations. We have uncovered the top 5 biggest financial translation challenges global firms are facing and proposed how to solve them fast and efficiently.
How to solve the 5 biggest financial translation challenges?

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Some Context On Financial Translation

Before we jump into the problems, let’s look at why financial translation matters and some context.

Sooner or later, every business that operates in the international market will require financial translation services. With globalization on the rise, the demand for financial translation is increasing tremendously. Nowadays, there are not just big brands operating globally. Successful local firms are trying to reach new markets on the other side of the world. European Startups are raising funds in Silicon Valley, and vice versa. Mergers and acquisitions are huge drivers for increased demands in financial translation services.

When entering new markets, companies have to translate and localize the necessary documents. This includes annual and quarterly reports, shareholders’ letters, market reports, audits, and more. Localizing your financial report for more audiences will provide clarity. Foreign investors will thus be keener to invest in your company.

But there is more than proficiency in understanding financial documentation. More often than not, translation is crucial to meet the compliance requirements of a specific country. General Data Protection Regulation (GDPR) is a great example. Global firms in the EU must provide critical financial documentation available in the local languages of the EU.

While GDPR is enforced all over the EU, there are many more country-specific policies companies have to keep in mind. Every business that operates in the global market needs financial translation services. From meeting the necessary regulations to providing clarity to a new audience.

Now that we have unpacked the context. Let’s look at the main challenges of financial translation.

Main challenges of financial translation, and how to solve them

Numbers in financial translation

When dealing with financial documents, we can’t go past the vast use of numbers. Depending on the part of the world, the number formulation can differ greatly from how you write numbers in your local country. Linguists need to understand how to use commas and points when localizing content.

Let’s take an example! In American English 3,700 reads as three-thousand-seven-hundred. Yet, in some parts of Europe, the same number is read as three-point-seven (“3.7”). The difference is substantial and could lead to serious financial consequences. Imagine paying 3000 EUR more than you anticipated. Not ideal…

The differences don’t stop with commas and points. Dates and currencies are also handled differently across countries. In the US, the date is written as month/date/year, while in Europe, the date is written as date/month/year.

Computer showing key metrics that you must translate in financial translation
Rigorous financial terminology is one of the biggest challenges in financial translation

Terminology in financial translation

Translating documents consistently is one of the biggest challenges of financial translation. This requires an in-depth understanding of the specific terminology. Translators have to understand and use the specific terms that are used across original and target languages.

It is necessary that financial terms are translated consistently across different documents. Inconsistent terminology is not only unprofessional but will also harm the business’s reputation and image.

In addition to this, terminology must comply with the International Financial Reporting Standards (IFRS). Translators must be up-to-date with all the latest IFRS changes, as all translated versions are legally binding.

Taia’s pro tip to help keep consistency is to create your own translation memory and glossary. This will allow you to achieve the same translation style through all your documents. You can also upload your own glossary and previously translated content to our platform to save time and ensure accuracy.

Time constraints in financial translation

When it comes to business, fast turnaround times have never been as important as they are today. Being more agile than your competitors means a greater chance of success. The same goes for financial statements. Deadlines are tight.

Annual reports and financial statements have rigid release dates, meaning most companies will release them at the same time. For translation companies, this means a huge amount of work that has to be done precisely and fast. To speed up the process, translators will often work with the financial reviewer or an auditor.

If you are under pressure with your financial translations, we recommend using a platform like Taia. Not only do we use AI-assisted tools but have translators that are experts in the financial industry. Our platform is also transparent with pricing and delivery dates. And you can select the quality level. This gives you all the information and control saving you time.

Calendar that show different important deadlines
A lock on computer keyboard represents how important it is to keep information confident r

Confidentiality in financial translation

When it comes to translating, the main issue with financial documents is confidentiality. Almost all financial information is confidential. At least until the yearly and quarterly financial reports are released. Prematurely revealing this vital information to competitors or investors could lead to negative consequences.

A problem arises when you are an international business. This means you have to create a financial report in various languages. The more translators that are involved in the process, the higher the risk of data leakage. Language service providers must provide clients with confidentiality and security. Translators working on the projects must sign Non-Disclosure Agreements (NDAs) to protect sensitive data.

Data security doesn’t end here. Another important factor in guaranteeing security is the way how files are handled. Emailing documents back and forth with sensitive content is a very bad idea. Hacking into unencrypted email has never been easier. Email is still the number one target for cybercriminals.

Handling all your sensitive information through the Translation Management system is the way to go. Check out our platform. With Taia, all your files are safely stored in encrypted cloud storage. Only you and your team members have access to your files. And this also means avoiding emails completely.

Market rules and regulations in translation

Last but not least, let’s talk about market rules and regulations. They are already complicated enough in your local market, let alone in a new market. They differ from country to country, which makes financial translation quite difficult.

The translator must be aware and up to date with all the rules and regulations of the source and target countries. This includes all the recent updates and particular customs in the target market.

If you want to operate in a foreign market, you have to be up to date with all financial regulations. When establishing your brand in a new market, you don’t want to run into any legal issues. Not only does this damage your brand reputation, but may also lead to punitive damages.

Market regulations differ from country to country

We strongly recommend partnering with a knowledgeable platform when entering new markets. Taia, for example, uses translators that not only can translate between language pairs but are also experts in certain industries. Your translation will therefore not only be a correct translation but also adhere to the market rules and regulations.

How Taia can assist you with financial translation

Financial translation is very complicated due to so many aspects it needs to adhere to. And you just can’t skip it when entering a new market. But don’t worry, we are here to help you at every step of the process!
Taia document uploader
Taia document uploader

Save on time and costs, all while increasing your productivity

Save time and have your executive and project team on one platform, running projects all in one place. With Taia’s platform, long turnaround times and back-and-forth emails (or worse, printed hard copies with scribbles on) are a thing of the past. Everyone can have an overview of what’s going on with Taia.
Secure translation process

Stay in line with the strict financial regulations

Ensuring you remain compliant, no matter what financial document you translate, is non-negotiable. But the process does not have to be painful. At Taia, we are specialists when it comes to this! We can translate high-volume and highly-specialized content quickly and accurately.
Secure translation process
Easy translation process with Catapult
Easy translation process with Catapult

Specialists in the financial industry on standby to assist

Taia has market-specific translation specialists, ensuring your translations are accurate, fast and industry-specific. Whether you need shareholder reports, press releases, insurance documents, or prospectuses translated – Taia has you covered.
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Do more with less effort using a platform that streamlines the translation process

Taia offers smart solutions so that you can focus on what’s important to you. The interface is user-friendly, which means your team does not have to spend hours getting to grips with the platform. What’s more, all your projects are available in one space-efficient and streamlined… just the way you like it.
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Bonus Question Answered: Why Should The Financial Industry Be Translating Content?

Team discovering all the benefits of financial translation

There is more to translating your content than just meeting the regulatory requirements. Trust and comprehension go hand-in-hand in the financial industry. And with the world becoming more and more global, your customers are more diverse.

Firms, and especially financial institutions have to communicate with a wide range of customers. They all come from varying socioeconomic classes, levels of education, and have different levels of familiarity with financial products and services…

And to gain trust, you need to deliver your message in the language your audience feels comfortable in. Your translated content must be customized for individual consumers and local markets, representing your firm as legitimate and trustworthy.

Team discovering all the benefits of financial translation

Taia is based in Europe but has specialists based across the world. We specialize in translation across all industries, continents, and over 97 language pairs.

If you would like to have a free and guided virtual tour of our platform, book your demo with sales. Or sign-up to our platform for free to self-explore it,

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