Top 7 Best Practices to Follow in Financial Translation


Top 7 Best Practices to Follow in Financial Translation
Beth Worthy

Beth Worthy

1/21/2020

The financial translation industry is complex and demanding. Sectors such as banking and finance are ever-changing, with new concepts coming up. The complexities of the business language used in the financial industry make content translation challenging.

What is Financial Translation?

Financial translation refers to the translation of financial information from one language to another. Financial document translation services are in high demand as financial corporations are now going global, and have to provide information to customers speaking different languages.

English is the primary language used for conducting business around the world. However, many nations still conduct business primarily in their national language. Examples of such countries include Japan, China, and Russia. Western companies serving customers in these countries will find financial translation services core to their success with both customers and investors. 

Challenges of Financial Translation

Financial translation demands attention to detail, and there is no room for mistakes. Simple translation mistakes can have disastrous consequences. For example, a corporation’s balance sheet that has translation errors can affect the public’s confidence with the company, and lead to serious consequences.

The financial translation field is complex. Here are some challenges that professional financial translators face:

Financial Terms

Financial terms are always getting updated. The jargon is intricate, and a sentence that means one thing in one language won't necessarily mean the same in another.

When looking for a company that provides business translation services, check whether its translators have an in-depth knowledge of both the primary language and target language. Having in-depth financial knowledge of both languages is important because when equivalent translation terms are missing, the translator will have to rely on their expertise to explain the terms.

Different Numbering System

In the financial industry, numbers relay important information. However, not all countries use the same numbering system. For instance, the U.S numbering system is different from the Japanese and Chinese systems.

Time-Critical Industry

Financial translations generally have to be fast without compromising on accuracy. Financial reports, emails, balance sheets, and business news are usually time-sensitive and require quick dissemination.

Regulatory Differences

The banking and finance industries are subject to strict rules that address their complex nature. However, these rules vary widely across the world. A financial translator needs knowledge of these different rules.

Fluctuating Currency Exchange Rates

Economic conditions are always changing. Financial translators need to stay up to date with the economic atmosphere of the countries they are translating to. For example, exchange rates, which can fluctuate, have to be captured in their most recent states to avoid monetary and legal complications.

Best Practices to Follow in Financial Translation

Here are some best practices of financial translation:

  1. Excellence in attention to detail

    Financial translators need to pay attention to details. Financial documents are sensitive and must be properly handled. Information such as contact details, dates, policies, numbers and amounts, and particular terminologies need to be translated accurately based on the guidelines of the target language.

  2. Perfection is key

    In financial translation, there is no room for mistakes. Financial institutions deal with vital numerical data, which make perfection in translation essential. Errors could result in severe consequences.

  3. Knowledge or experience in banking and finance

    The perfection demanded in this industry requires translators to have extensive knowledge of global finance and be adaptable to the ever-changing industry.

  4. Academic qualification in a related field

    Changing dynamics in the financial sector make having a formal education in related fields vital to financial translations. The dynamics demand continued research in finance and economics, as well as target languages.

  5. Handle confidential data with care

    Financial translators handle sensitive data from multiple clients. These documents have to be held securely. Any form of breach could result in losses and lawsuits.

    To maintain their reputation, financial translators exercise high caution when handling confidential data.

  6. Keeping up with updated financial terms

    The financial industry is rapidly evolving and is closely connected with technological innovations. Therefore, new terminologies come up now and then. A financial translator has to stay updated with the changes in financial jargon.

  7. Critical analysis of financial files before beginning translation

    Translators need to analyze financial data before starting work on them. The critical analysis helps to detect inconsistencies and ambiguity. It’s upon translators to communicate complications with clients, analyze, and clarify financial documents as needed.

Hundreds of organizations with global outreach, multinational shareholders, and employees understand the significance of financial translation services. Work with companies that offer professional translation services to capture financial reports, audit reports, and conferences for their daily business activities.

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Beth Worthy

Beth Worthy

Beth Worthy is the President of GMR Transcription Services, Inc an Orange County, California based company that has been providing accurate and affordable transcription services since 2004. She has enjoyed success at GMR for almost ten years now and has helped the company grow. Within two years of Beth managing GMR Transcription, it had doubled in sales and was named one of the OC Business Journal’s fastest-growing private companies. Outside of work, she likes spending time with her husband and two kids.