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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.
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.
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.
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.
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
Save on time and costs, all while increasing your productivity
Stay in line with the strict financial regulations
Specialists in the financial industry on standby to assist
Do more with less effort using a platform that streamlines the translation process
Bonus Question Answered: Why Should The Financial Industry Be Translating Content?
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.
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.
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