Financial services is an international industry facing rapid changes that affect businesses all over the world. Companies that are doing business internationally are challenged with a range of legal obligations like tax regulations, risk management strategies, and financial reports that differ from those in their home country. International companies or companies who are looking for ways to go global have the need to adapt their financial documentation to local markets.
This is when businesses feel the necessity to turn to financial translation services. Finance translation services involve the conversion of financial documents, statements, reports, and audits from one language to another. As financial translation requires careful diligence, not everyone can successfully manage the task. That is why businesses need to cherry-pick the translation service provider who will understand the nuances of the financial industry and will ensure order for all crucial financial documents.
If you are still questioning whether or not you need to translate your financial documents, here are the reasons why you should:
Why is it Important to Translate Your Financial Documents?
Finance is one of the most heavily regulated sectors. Many financial documents undergo serious audits from regulatory authorities. That is why in this highly specialized field there is no room for mistakes. If your financial documents are not translated accurately, you can find yourself in a situation with negative legal or financial consequences.
Even the biggest players in the financial industry like HSBC have fallen victim to inaccurate translations that have caused huge costs to the company. In 2009 HSBC launched the “Assume Nothing” campaign and failed to check the translations for different markets they operate in. Because of that, the non-English speaking countries launched the campaign with the translation as “Do Nothing” instead of the original that conveys a totally different message. This mistake cost the bank $10 million to resolve the issue and restore the brand image.
As we can see for international companies it is vital to translate their financial documents and the overall content in the most precise way. Here are a few more reasons why:
1. Increase Readability
When it comes to conducting business in another market, the language barrier is very often a big hindrance. It is a very common scenario when the clients find it difficult to read the provided content in a language different from their own. Having your financial reports professionally translated into the languages of your target markets will be a great asset for your business as it will increase the readability of your documentation.
2. Ensure Precision
Financial documents are strictly regulated. This means that there is no room for mistranslation or misuse of words in the wrong context. If you do so you might end up with a big fine or harmed brand image. To make sure all your financial documentation is up to date with the market standards, professional translation services are what you need for your business.
What to Look for When Choosing a Financial Translation Service Provider?
As we discussed before, the financial industry is not the one where mistakes or errors can be forgiven. The errors made might cause fines or even legal issues. That is why financial translators should understand the industry inside out, be aware of new developments in the sector, understand cultural differences and any ongoing changes in law and practices.
But how can you find the ultimate financial translation service provider?
1. Secure Ultimate Level of Confidentiality
Some Financial documentation requires a high level of confidentiality and security. It goes without saying that customers attach great importance to the discrete handling of their documents. That is why it is important for financial translators to be committed to absolute discretion. When choosing a financial translation service provider make sure you will be provided confidentiality. You can also request to be provided an NDA for your financial translations stating that all persons involved will keep your records absolutely confidential.
2. Be an Expert in the Financial Industry
The financial industry has its own terminology and lexicon. And many languages have financial terms unique to them. If a translator fails to understand the context in which a certain word or phrase is used, they may end up communicating a wrong message. To avoid this situation, make sure the translators are proficient in using the right terminology and style for financial documents. It is also important for them to understand the format and structure of the financial documents that the country requires.
3. Cover all Types of Financial Documents
Financial translations are not for newbie translators as the financial industry covers a wide range of required documentation. From tax and audit reports to disclosure agreement translations, from income statements and cash flow statements to balance sheets, only professional and experienced translators have the skillset to provide high-quality translations for all types of financial documents. So when choosing a financial translation service provider make sure they have the experience to successfully cover all types of financial documents like market research and risk/asset management documents, due diligence checklists, and mergers/acquisitions texts.
4. Ensure Quality Multi-Language Translation
When it comes to highly technical translations like the translation of financial documents a literal translation is never enough. Translating is not simply replacing a word with another word in a different language. Translators should understand the complex process of interpretation, writing, and correcting, considering the wider context of the document. They need to understand the regulations and laws of the target market. Only by understanding the target market, the industry specifications, and by having native-level language knowledge can translators provide quality multilingual translations.
5. Provide Support and Dedicated Account Manager
Translations take time. They also take rewrites. This is why when choosing a financial translation service provider pay attention to whether or not they offer a dedicated account manager. Working with a dedicated account manager will ensure that your project needs are fully understood and the highest level of customer service is provided. Account managers work closely with you during the whole project, understanding your brand voice and guideline in order to communicate the right requirements to the translators.
They basically take care of all aspects of the project answering any questions you may have throughout the projects. And with provided support, you will receive help on your questions and concerns in a professional and timely manner.
We at Verbika provide financial translation services for financial institutions and financial departments of corporations.
If you are looking to get top-quality financial translation services for your company’s financial statements, annual reports, audit reports, or merger and acquisition (M&A) documentation, just contact us!