Translation for Fintech Common Mistakes: How to Avoid Costly Errors
Before explaining what the “translation for fintech common mistakes” is all about, it is worth mentioning a few things about the context that gave birth to the fintech sector.
One of the main industries that has seen a massive change in how to move around the digital landscape has been the banking sector. Not only because we were able to almost say goodbye to time-consuming in-person queues for simple operations, but also because it opened the game for new players to arrive.
Finance no longer belongs exclusively to the world of traditional banking and growing companies, i.e. fintechs, emerged as a response to a world that demanded more agility and flexibility. And, as the fintech sector is expanding rapidly, many companies are looking at international markets with hungry eyes. After all, with so many options to expand the customer base, who would not be interested?
However, one of the most enduring challenges fintechs face in their international growth is language. And it is not an easy one, as some errors can lead to miscommunication, compliance risks, and even financial losses. We will expand on these below.
Translation for Fintech Common Mistakes—The Top 5
Ensuring accuracy in financial translations (as well as legal translations) is critical to maintaining trust and credibility. But be aware that it is not just about linguistic correctness; it is also about maintaining regulatory compliance and making it simple and easy for the users.
So, what are the most common errors in fintech translation, and how can avoid them? Have a look at the list below.
1. Misinterpreting Financial Terminology
Financial terminology is highly specialised, and even small translation errors can cause confusion. A term that has a specific meaning in one language may not have an exact equivalent in another.
Words like “equity,” “yield,” or “leverage” may have multiple interpretations depending on the financial context. A quite common example of this is the term “stocks,” which in American English refers to company shares but can mean livestock in other contexts if mistranslated.
You will see later on in this article that we recommend, as one of the main finance translation best practices, working with experienced financial translators. And of course, we do! We are linguists after all, but apart from that… because we are also banking users.
2. Ignoring Regulatory Requirements
Fintech companies must comply with various financial regulations depending on the regions they operate in. Translation for fintech common mistakes often include failing to localise content according to country-specific legal standards.
Compliance documents, contracts, and disclosures require precise translation to ensure they meet regulatory frameworks in different jurisdictions. For instance, a fintech company expanding to the European market must adhere to GDPR regulations, and an unclear translation of data protection policies could result in legal repercussions.
#OptimationalTip: Although legal documents are usually quite generic and with few variables, an error in their translation can become a costly expense. Thus, a careful revision by qualified professionals is always desirable.
3. Overtrusting Machine Translation
While AI-powered translation tools have improved significantly, and helped in our routine tasks quite a lot, they are still prone to errors. And, just to make you fully aware of this, it could be a bigger pitfall for specialised fields like fintech.
Automated translations may not recognize context-specific terms, leading to inaccuracies. For example, a machine translation of “liquidity risk” could misinterpret it as “liquid assets risk,” which changes the meaning entirely.
Plus, if we mention AI tools like ChatGPT, we can affirm they still lack understanding of tone and purpose. Moreover, they fall short in the interpretation of what would be the most correct or appropriate term or approach to use—which could lead to mistranslations.
Keep in mind that these tools have translation capabilities, but are not made for that. As they use web-based information (which is not always accurate nor up to date), only human translators with expertise in financial services can provide an added layer of quality control, ensuring that translations are both precise and legally sound.
4. Neglecting Cultural Aspects
Cultural nuances play a significant role in financial communication. Well, in fact, in every type of communication, as a phrase or tone that works well in one country might not be suitable in another. And not to be picky, but sometimes it even changes within a same country! But do not panic: We are here to help.
Fintech companies must adapt their messaging to align with cultural expectations while maintaining accuracy. Just to mention a broad example, in Japan, formal language is highly valued in financial communications. In contrast, in some Western markets, a more direct approach is a better practice.
And even so, this all depends on who your target personas are, as it is not the same speaking to a millennial audience than to the baby boomer or Gen Z generations.
But for now, let us not get deeper into that; Just bear in mind that localising financial materials by following finances translation best practices ensures they resonate with the target audience.
#OptimationalTip: Perhaps you aim with your services in your local country to a certain target, while when expanding abroad it is more promising to tempt a younger audience. If so, all the more reason for you to look at cultural aspects, which will have a wider gap to fill.
5. Inconsistencies in Terminology and Branding
Other types of translation for fintech common mistakes you want to avoid: Issues related to your brand image.
Maintaining consistency in terminology across all platforms and channels is crucial for all brands that are seeking to expand. Not to mention to be taken seriously enough for people to put their economies into their hands.
Inconsistent translations of key terms can create confusion among customers and regulators—and nobody wants that, right? Using glossaries, translation memory tools, and standardised terminology ensures that all documents, websites, and apps maintain coherence.
If the concept of translation memory is new to you, make sure to give a chance to the webinar session on CAT tools, where you can learn what you can gain from translation technology.
Best Practices for Fintech Translations
To avoid these common pitfalls, fintech companies should implement (or better said, follow) the finances’ translation best practices that we list below:
- Working with professional financial translators, even better if they already have first-hand experience in the fintech world.
- Following quality assurance processes such as proofreading and multistep reviews, specially if made by native linguists.
- Maintaining regulatory compliance by working with legal experts.
- Implementing localisation strategies tailored to each target market. This applies both to the language and the way of approaching your new audiences.
- Using technology wisely and only when convenient, always ensuring human oversight.
- Creating a centralized terminology database to maintain consistency across platforms. Here are some tips to create a translation glossary.
- Testing translations with native-speaking users to detect usability issues before launch.
- Providing feedback to your translation services partner; this way, you can ensure the upcoming translations are in line with the testing results.
Last Words: Ensuring Accuracy in Fintech Translations
The risks associated with the common mistakes in translation for fintech highlight the importance of a right and professional approach to translating finance content. We mean going beyond words and considering accuracy as a transversal aspect to compliance, engagement, and consistency.
A well-translated fintech platform enhances user experience, while poor translations can drive customers away. If users do not understand financial terms or processes, they may feel insecure and seek alternative providers. Nobody wants to spend more than a few minutes (or seconds!) operating online. Specially when there are many other options to switch to.
That being said, ensuring clear, user-friendly translations fosters trust and customer retention, making high-quality translations a key factor in fintech success seeking to take the global leap. If you need help when addressing the mentioned finances translation best practices and want to avoid costly errors, get in touch today.
