Need And Challenges Of Financial Translation Services

In 2021, bilateral trade between the US, China, and some neighboring countries resulted in a financial exchange equivalent to US$723 Billion. Have you ever wondered how a huge amount of international trade is carried out despite language barriers and regional differences? Import and export of goods and services are a part of small and large corporations and the financial strategy of every country.

The key factor is how these countries and businesses build and maintain flawless legal and financial communication despite language barriers! The simple answer is elite translation services. In this short read, we have discussed the crucial role of professional translation services.

The spike in international trade led to an increased demand for financial translation services. On the other side, international trade is a highly sensitive subject that demands expert industry professionals and impeccable language skills.

If you are here to know about how financial and business translation works and what are the current challenges, you are in the right place! Your company might soon need these services and you may have some questions. What is the required expertise of financial and business translators? What are the tested solutions to consistent roadblocks, and what is the recommended process for ensuring the delivery of efficient financial and business documents? Let’s explore the comprehensive answers to these questions.

What is Financial Translation?

Financial translations include the accurate translations of financial documents related but not limited to cash flow documents, statements, balance sheets, audit reports, etc. from one language to another. These translations are carried out not only for banks, but other corporations and businesses also require the services of a professional translation agency.

The primary aim of financial translations is to keep all the stakeholders and partners updated with progress and keep them in the loop despite the language barriers. International mergers like Brexit and other business ventures always need the services of professional translators. So that all the relevant parties can read, understand and implement the same rules, and guidelines, and get the same reports.

Key Industries and Financial Translations

The financial sector is one of the most diverse industries out there and often involves cooperation between different sectors like reports from insurance, expense reports from manufacturing, statements from finance, and income statements from real estate. Below are some documents across different industries that acquire the services of expert translators.

• Big corporations: Shareholder reports, monthly and annual reports, and balance sheets.
• Accounting and tax: Income statements, tax reports, tax clearance reports, VAT reports, new rules and updates, and compliance reports.
• Investment industry: Elaborated terms and conditions, monthly and annual funds, bonds, and equities reports.
• Real estate: Bilateral and trilateral contracts, income statements, and real estate listings.
• Insurance industry: New and updated insurance policies, detailed documents of regulations, and terms and conditions.

Main Challenges of the Financial Translation Industry

Despite the progress in every department of finance and regulations, there are some key challenges that both translators and other stakeholders face. The nuance of one language can become a confusing foreign term when translated into the target language and the chance of human error can be managed but it is always there. Below are four key challenges:

1. Regional Regulations

Like normal language translations, regional culture, norms, and regulations are very relevant when it comes to financial translations. Another common factor is a certain touch of localization that means communicating not only terminologies and words but presenting the entire reading experience to the target audience.

The translators need to keep up with the difference in currency units, formatting differences, and colloquial financial terms. For example, UK financial experts write “Creditors”, and US experts write “Account Payable.” So for non-native English speakers, the mere transliteration of financial documents and terminologies might not be enough.

2. Voice Tone and Translation

Even though most financial documents comprise numeric information, some documents like audit reports include detailed text. These are required to be translated accurately according to the multilingual stakeholders and must follow a certain tone of voice.

So, for translators, it is important to follow the company’s specific tone and voice to ensure that the translated version communicates accurately while adhering to local norms and traditional linguistic differences.

3. Reliability and Precision

Documents with large numeric sections require extra attention to mitigate the chance of errors. In business translations and financial documents, an iota of mistake can result in the misinterpretation of an important document.

4. Security of Data

Another important element of financial and business translation services is utmost discretion and confidentiality about personal and sensitive financial information, especially about income statements, audit reports, insurance documents, and other sensitive documents. Following the latest cybersecurity measures is a must for every translator of the business translation industry to mitigate the risks of cyber attacks and ensure data security.

Common Mistakes To Avoid In Financial Translation

Errors can alter the meaning and damage the reputation of stakeholders whether it is a financial or any other translation. Look out for these common mistakes while translating financial documents.

A. Inconsistent Terminologies

In the English language, many words and terminologies are used interchangeably. These similar terms can confuse the translator and create misunderstandings.

For example, in English, “account statements” and “bank statements” are used interchangeably but these interchangeable terms can confuse the translator if used without any prior explanation. So it is recommended not to use interchangeable terminologies for the same term.

B. Numeric Inconsistencies

Numeric errors are more prone to occur especially near the end of a hectic day of translation. Different currency units and numeric differences can also make it hard to avoid errors. Below is an example of different numeric usage in different countries for the same purpose.

C. Formatting Issues

Apart from the writing differences, formatting nuances can make a huge difference in financial documents. Every country has different formatting for the same financial documents. Translators need to consider these basic changes effectively.

Final Thoughts

Translators play a defining role when it comes to trade between different countries and businesses especially when it involves big amounts of capital. Translators are expected to be equipped not only with industry-specific vocabulary and terminologies but also must be familiar with cultural and linguistic differences between the source language and target language.

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