Banking + Finance Translation Services

Navigating the world of Banking and Finance terminologies can be quite challenging. Efforts have been made to standardize financial language and improve transparency in financial reporting, such as the establishment of the International Accounting Standards (IAS) in 1973.

Regardless, financial reporting and translation remain an area of difficulty, even for professional translators and finance companies around the world. A look at the English version of the annual reports of major listed firms reveals many inconsistencies in the use of terms, mainly due to misleading translations.
For example, a study investigates the English translations of the annual reports from 393 listed firms in 11 countries. It looks at how the financial concept loss of value due to damage or changes in circumstances – impairment is translated from different languages into English.
Findings show that most translations did not use the correct term “impairment” to denote this financial concept. Indeed, many translations were misleading.
Particularly, in Carrefour’s 2006 Financial Report, multiple terms are used to denote “impairment” within a single translated document. The Property, Plant and Equipment (PPE) note on page 96 uses “write-down,” the table on page 97 mentions “depreciation,” and the PPE policy note on page 79 simply refers to “loss in value.”
At a glance, “impairment” and “depreciation” may be similar in meaning, which is likely the cause of confusion for translators. However, it is important to note they are two separate financial terms that should not be used interchangeably. “Impairment” is measured based on a decline in value but signifies damage as the economic event. On the other hand, “depreciation” is measured considering the eventual expected residual value, with the economic event being the passage of time or gradual wearing out.
This example illustrates the complexities of Banking and Finance terminologies. Translators of financial content should have a deep understanding of financial terminologies in order to distinguish between nuanced financial concepts and use the correct terms to maintain the accuracy and integrity of financial translations.

As mentioned above, misleading translations can lead to misunderstandings, as the intended meaning of financial terms may be lost or distorted. This can result in confusion and have a negative impact on communication between the parties involved, leading to potential errors in decision-making.
Analysts rely on accurate information and terminology to assess financial data and make informed recommendations. If translated terms are misleading or ambiguous, they can compromise the accuracy of financial analysis and hinder the ability to evaluate investments or assess risks effectively.
Indeed, financial statements are crucial for investors and stakeholders to evaluate a company’s performance and financial health. Misleading translations of terms can impact the accuracy and consistency of financial reporting, making it difficult for users of financial statements to interpret and compare financial information across different entities or jurisdictions.
Inaccurate translations can also undermine market efficiency and transparency. Investors rely on accurate and consistent information to make informed investment decisions. Misleading translations can introduce uncertainties, hinder market analysis, and create disparities in information, which can impact the fair and efficient functioning of financial markets.
Ultimately, misleading translations can erode trust and damage the reputation of financial institutions and the industry overall. Investors and other stakeholders depend on reliable and transparent communication. Inaccurate translations can raise doubts about the integrity and professionalism of the entities involved.

Banking and Finance content often contains sensitive and confidential information, such as customer data, financial statements, transaction details, or proprietary business information. Translators must handle this information with utmost care and maintain strict confidentiality throughout the translation process. Financial institutions are subject to strict data protection laws and regulations, for example, the General Data Protection Regulation (GDPR) in the European Union or the Privacy Act of 1974 and the Gramm-Leach-Bliley Act (GLBA) of 1998 in the United States. Unauthorized access or disclosure of sensitive data can lead to severe legal consequences.
Translators working in the Banking and Finance sectors are often required to sign Non-Disclosure Agreements (NDAs) with their clients. NDAs establish a legally binding commitment to maintaining confidentiality and prohibit the disclosure or use of any confidential information obtained during the translation process. Translators must strictly adhere to the terms of these agreements and ensure that their team members also comply with the confidentiality requirements.
Translating confidential banking and finance content requires the use of secure communication channels and translation platforms. These platforms should have robust encryption protocols, secure file transfer capabilities, and appropriate access controls to protect sensitive information during transmission and storage. Translators and translation service providers should employ secure technology infrastructure to safeguard the confidentiality and privacy of the data.