How to Overcome the challenges of Financial Translation
By: Antonia Ava
The financial sector is the backbone of an economy. As the global sector will reach its maximum capacity so will the financial sector grow and continue to thrive. Considering the rising competition in the industry, financial institutes need to work on their credibility and public image in order to become a preferred choice. Just like for many other industries, effective translation and localization are crucial for the finance and banking industry and that’s where professional financial translation services can help you out!
Importance of Financial Translation
To spurt the growth rate, small scale industries want to keep their business booming and prosper not only within their locality but to outgrow the native market as well. To try achieving their target overseas is a need of the hour and no company can deny it, regardless of its size. The financial department can be a real mess and ledgers and other documents can result in chaotic information for overseas if not stabilized from the very beginning.
Financial terminology in one country may not be applicable in another; this can lead to linguistic hurdles. To overcome the linguistic differences international companies are bound to use translation services. That's where we can be of great assistance. Several documents like administrative process, income statements, balance sheets, reports, etc. need accurate translation and there is no room for error in such documents.
Most companies aspiring to establish a strong foothold abroad need to have a stable financial department. To be able to represent the business statements in the same or different time zones, financial translation is done so companies can target the right audience.
Ways to Overcome Challenges of Financial Translation
Linguists often face a set of challenges during the translation process. Financial documents are critical and translating these documents needs precision to target the right audience. To be able to do so, some steps can be followed to overcome the risks during the financial translation;
1. Choice of Words
Each industry requires a subject matter expert, well reversed in terminologies. Financial terms need to be translated with the right choice of words. Precision and accuracy are important to maintain so a translator needs to be careful about the choice of words he/she is using.
Keep this in mind some terms are more common in one country while the sub context may differ in meaning in the other country. For instance, financial punctuations are different for some countries such as 2,000 may be read in American English but in the European context, it may be read as 2.0, or the use of currency units may also differ. You may say 10billion in American English while in British English you will call it as 10,000million.
2. Maintain Confidentiality
Financial documents consist of sensitive information and the popular term "inside information" can be used to show the importance of confidentiality. Because of this, the translators must be careful in translation.
To out rule the leakage of any confidential information, NDAs are signed making the translation company and its translators bound to the agreement, if the agreement is breached somehow than the third party service is entirely responsible for it and can be sued by the client.
This assures the clients that the information being provided will be secured and remain confidential.
3. Follow the Local Regulations
Regulatory compliances are an important matter especially if you wish to collaborate business with an overseas company.
The financial statements of a company must comply with the local regulations according to rules and regulations of the by-laws. The financial translator must be able to comprehend the importance of the governing rules. They must be aware of the local rules and intricacies to procure a high level of source and target language.
Translated content can change clauses and disclaimers in the target language. Similar to the punctuation case, some of these clauses may not apply to another country.
4. Subject Matter Experts
Translation falls into various categories. This brings certain challenges for the translators as well. Some translators are subject specialists which makes them a preferred choice for the client. Financial documents are technical and therefore a financial expert can understand and translate the content with the required efficiency.
To avoid misunderstandings, subject matter experts are of high importance for the translation providers. A skilled translator, familiar with the terminologies and technicalities of financial documents is the most suitable choice for flawless financial translation. So to avoid any error in the translation an expert needs to be hired.
5. The Right Use of Terminologies
Translators pay special attention to the tone and words used in financial documents. As the regulatory financial terms keep on changing from country to country, translators need to ensure the use of the right terms.
It is vital to follow financial guidelines to ensure that formatting and quality of translation remain intact in the target language. For instance, the term common stock in the U.S is commonly pronounced as called-up share. "Capital" is a common term used in majority countries while in Russia "share capital" is the right term.
One thing to remember is that financial terms are not to be translated word by word; due to differences in glossaries, it is a must for a translator to maintain the contextual meaning.
6. Time Constraints
Time doesn't wait for anyone in this fast-paced world. To race ahead of the competitors, businesses opt to choose financial translation services that are fast and efficient in their workings.
All the required research must be done prior to the beginning of the translation process; this saves time and any extra effort. To keep up with the race, it is important to prepare an outline and work accordingly.
It’s vital to choose the translation company that works around the clock and delivers the project in the fast turnaround time. Often the financial documents require constant updates, so it is important to plan the translation calendar to keep up with the pace.
Financial translation is different from simple document translation and in order to get flawless results, you need to hire a reliable translation partner with industry-specific knowledge, top expertise, and relevant experience. Mars Translation Services specializes in financial translation services and we ensure timely completion, no matter how long a project is. Get in touch for more details!