Financial language is a specialized language with a specific lexicon and grammar that makes it different and exclusive. It is a language with its own terminology in which it is conceptualized differently from everyday language, making its translation complex.
Consequently, any financial translation requires, in addition to extensive experience in translating financial documents, a thorough knowledge of the economic subject matter. This will enable you to understand its characteristics and overcome its challenges.
What are financial translations?
Financial translation is a type of specialized technical translation in the field of economics and finance.
This type of translation is a discipline that requires knowledge of the basic principles of financial management, fluency in the use of technical terminology, the ability to understand and present specific formats, and accuracy to convey the content.
The translation of financial documents is a key factor in the globalization of the economy. It serves as a bridge for all international business agreements and for all collaboration between companies, financial institutions, and governments around the world.
What makes financial translations different?
Financial translation is a challenging discipline, as it possesses certain characteristics that make it demanding and set it apart from other translations, even from other specialized fields.
One of the main characteristics it possesses is the variety of activities it covers both in the public and private sectors: taxes, trading, stock exchange, investments, real estate, market analysis, accounting, banking, business, etc.
Among the characteristics that make financial translations different are:
The variety of documents and formats. It includes documents, books, reports, financial statements, bonds, bids, statements, contracts, certificates and analyses, among others.
The complexity of the content. Due to their nature, understanding financial and economic activities requires training and experience.
High precision. The financial translation agency must have specialists with extensive linguistic skills and knowledge of financial terminology and laws, both in the source country and in the target country of the document.
Specialized terminology. Financial language has its own technical and conceptual terminology. It also uses terms from general language, but with a different meaning.
Tight deadlines. Economic activities are dynamic and require quick actions, so financial translations must be carried out within a short period of time.
The main challenges of financial translations
Translating financial documents also requires experience and knowledge to overcome some challenges:
Differences between financial regulations by country
Each country has its own economic rules; therefore, the financial translation agency must know and understand the different nuances of each standard, both those of the document’s source country and those of the target country of the translation.
It is true that legislation in the European Union has adapted legal regulations in accordance with the International Financial Reporting Standards (IFRS), in order to standardize the rules. However, there are also other important regulations, such as the U.S. Generally Accepted Accounting Principles (GAAP).
The different meanings of a term depending on the country
There are often terms in one language that do not have the same semantics as in another. Therefore, it is a challenge to achieve accuracy in translation when there are concepts or terms that do not exist in the target language.
This can happen in both general and specialized language.
However, it is a major challenge in financial translations due to the processing of highly technical documents, with very precise information that may have legal relevance.
Confidentiality of documents
Financial documents usually contain confidential information, so financial translation services must provide the necessary mechanisms to ensure a high level of protection over the documentation to be translated.
Consistency in terms
Another challenge is to keep consistency in the terms used in the translation. Although translation always allows room for the use of synonyms, the translator must maintain consistency by using the same terminology. To do this, it is important to create a database that can be used for all documents.
Evolution of standards and speed of delivery
It is also a challenge for the translator to always be up to date with financial regulations, and the accuracy of the translated content depends on this. Moreover, the financial translation company must be prepared to provide a fast and high-quality service, because in the financial sector there is no room for delays and documents are generally urgent.
Best practices when dealing with financial translations
To achieve optimal financial translation services, certain practices must be followed:
Establishing instructions. Before starting the translation, the objectives and full instructions should be established between the translation agency and the client. For example:
What terminology should be used?
Who is the target audience for the translation?
Continuous training of the translator, as well as constant updating in financial terminology.
Prior knowledge. Having a background in finance and economics is extremely important for a good financial translation.
Compliance with the legal regulations of the countries involved.
Compliance with confidentiality of information, as well as data protection.
The use of advanced language technology, in order to increase document processing and management security.
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How to choose a financial translation company
It is always necessary to choose a financial translation company that complies with quality standards and data and information protection, has experience in the industry, and has advanced technology.
At Pangeanic, we specialize in the area of economic and financial translations, always accurate and reliable, with high levels of consistency and in all languages. We use our own patented technology for document control and management, project tracking, and secure data management.
Major financial institutions such as Banco Santander, Ciriec, Barclays Bank, and the Tokyo Government Office, among others, can testify to our experience of over 24 years. All of them have entrusted their financial documentation to us for accurate and clear translation.
At Pangeanic, we understand the importance of translating financial statements in a reliable, accurate, and secure manner. We recognize the importance of clear and concise communication in the economic sector.