For banks, insurance firms, and other financial institutions seeking to increase access to services, financial translation is essential. It strengthens consumer trust and helps comply with international laws and guidelines. Yes, English is still the internationally known business language. Most of the global finance conducts operations in English, but financial translation is more relevant than ever before. There are situations where the need arises to translate information into languages other than English.
Financial institutions broaden and build offices in various parts of the globe. Thus, they have to communicate and make vital information accessible in several target languages. Many of these institutions have to provide different data in different languages. In this article, we are going to talk about financial translation and its importance. So, let’s begin:
Importance of language in the financial and banking industry
Several reasons indicate the importance of language in the financial and banking industry. Moreover, it states the importance of financial translation services. Some of these reasons are:
New words and phrases
Technology and innovation go along well with the financial industry. However, it leads to leading new financial instruments, and revolutionary ideas enter the market. It also includes the addition of incorporating unique terms and phrases to an already confusing dictionary.
Financial translators try to keep up with the developments and know about the new technologies in their field as much as they can. It states that financial translation services solve this issue.
Better communication between banks and customers
Due to globalization, banks are expanding on various levels. They are spreading all around the world. It is essential to be a part of an ever-growing competitive market. Thus bank statements, shareholder reports, trade deals, and other documents need to be translated as per the language of customers. Financial translation services enable better communication between clients and banks.
Documents that need a financial translation
In situations where written material is interpreted into another language, financial translation requires more than standard translation. Insurance, investment, and banking are included in financial services. Each of them involves specific words and terms.
Financial translation is essential for several reasons. One of them is because the financial principles and language vary from place to place. Thus, it requires a specialist to do the same. If we talk about numbers, format, and words, some countries often have specific instructions for financial documents.
If the translator fails to recognize the clear needs of financial translation, the variances might be minor and easy to overlook.
Financial documents that generally get translated are:
- International Financial Reporting Standards (IFRS) documents
- Foreign exchange
- Reports for the securities and exchange commission
- Tax reports
- Regulatory documents
- Business plans
- Public and private offerings
- Financial agreements
- Benefits statements
- Retirement plans
- Application forms
- Client meetings
- Income statements
- Cash flow statements
- Balance sheets
- Auditor’s reports
- Annual reports
- Documents related to insurance
Challenge in financial translation
Not to forget, there are several challenges in financial translation. You may come across these challenges while undergoing the process. When preparing bank records and translating the paper for various target markets, linguistics frequently face several challenges. The problems, however, aren’t only confined to documentation.
Privacy and privacy are also two of the core concerns. And only a professional financial translation service will effectively deal with these conditions. Some of these challenges are:
Getting the terminology right
The possibility that languages vary from one location to another is one of the most challenging things about financial translation. And therefore, terms of business often vary.
In terms of business, just a simple mistake can result in a complete shift in the statement, which in turn may impact the company’s revenue earnings. The terms of business may also vary from one industry to another. The linguist should, indeed, have a strong understanding and information about the financial sector.
If a successful business wishes to work with another business in another country, the previous one must comply with such regulatory requirements as specified by the country.
For instance, in collaboration with a UK-based organization, if an entity wishes to create its branch in the United Kingdom, it must give statements that meet all regulatory enforcement.
All of these documents need to be translated by an expert financial translation company to make it easy to understand the different terminologies used in the documents.
Financial translation is essential for so many reasons. It enables better communication between banks and clients. It also helps a business to set up in some other country. However, there are specific challenges in terms of financial translation. One should consider these challenges. An excellent financial translator helps to solve issues of these challenges.