Why financial translations need a specialist translator

Whether you work for a small, medium-sized or global company, you can gain many benefits from having your financial documents translated. Clearly machine translation – whether generative or not – is not well-suited to such a niche area where using the right terminology is very important. But there are also good reasons for not allowing just any linguist to deal with your financial translations and instead appointing a professional who specialises in finance. By using a specialist translator you get:

• expertise in economics and the financial sector with knowledge of how to use the correct terminology,
• knowledge of the relevant standards, formalities and regulations,
• a professional who knows the right words, tone of voice and type of language that is appropriate for the types of documents being translated and
• a combination of knowledge and experience that allows the translator to make reasonability assessments.

Novoterm’s specialist translators work with translations and language reviews in more than 40 languages. For this article, we interviewed one of our most experienced financial translators for a more in-depth look at how financial translations differ from the norm, what they require of translators and what it means to be a specialist translator.

Types of financial documents and what they require of the translator

The types of financial documents that companies need to have translated can vary, but common examples are quarterly and annual reports. These require the correct terminology to be used consistently throughout the document along with an understanding of the relevant accounting standards in the country concerned. Press releases are another example of texts we are frequently asked to translate. These require concise, accurate and clear language that provides information without any distortion, using words that are chosen and adapted to suit the cultural norms and media landscape of the relevant country.

Another example of an aspect that places further demands on translators is the notes to the financial statements. These require the translator to have in-depth knowledge and understanding of stricter accounting standards and, for example, IFRS- or CSRD-specific regulations. Even the CEO’s statement requires a sensitive touch to communicate the right tone that is lively and personal, but at the same time accurate and able to inspire confidence.

In order to be able to meet the demands of financial texts, translators don’t just have to be expert linguists with a unique feel for their language and extensive experience – they also need to have in-depth knowledge of subjects such as company finance and business law.

The challenges and problems of financial translation that require a specialist

We asked one of our most experienced financial translators about the most frequent type of problems that occur when texts are translated in-house or by non-specialist translators. The answer was that common problems include using too many words, poor flow and translations that stick too closely to the source text. It may be surprising, but the fact is that an area as niche as finance often requires the translator to think outside the box to create accurate, free-flowing text. Being able to do this requires both knowledge and experience – or there’s a big risk of things going wrong.

Another frequent issue is that a translator may understand the text but has not read enough business literature in the language they are translating into – which makes it virtually impossible for them to formulate their text concisely and intelligently. Similarly, putting too much emphasis on language can result in a translator failing to assess the plausibility of their own interpretations because they are concentrating on the words rather than seeing the whole picture – for example how an options contract actually works.

The latter issue can also be related to the fact that a translator inexperienced in dealing with financial documents doesn’t know enough about the subject, lacking detailed knowledge in particular. In some types of financial texts the use of generalised wording is very common, which means that expertise is required – both to understand the source text correctly and to ensure the translation is correct.

A major challenge is that financial documents often contain an unusual combination of general jargon, precise terminology and a concise but expressive industry-specific language that everyone in the sector knows and needs to be familiar with. This, together with the fact that there is often very little in the way of reference material, means that anyone who is going to translate documents on subjects like macroeconomics and trading needs to read articles in the business press and company documents on a regular basis in order to master the correct terminology.

Specialist financial translators at Novoterm

Here at Novoterm, our financial translators often have qualifications in areas such as economics and business law which equip them to handle the challenges presented by financial translations. As well as keeping up to date with current developments by reading articles in the international financial press, annual reports and prospectuses, through us they can take further internal and external courses in order to hone their expertise even more.

Through our specialist translators, we can ensure that our translations of your documents live up to your high standards and expectations. Our clients include some of Sweden’s largest listed companies. Are you looking for a translation agency with specialist financial translators for your documents?

We will be happy to help you with your financial translations!

Novoterm is a highly regarded translation agency that was established in 1996. We offer language services in more than 40 languages provided by translators and proofreaders who understand your industry – we listen, we understand, we translate.

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