Development of Financial Translation

 

Large government-owned utilities were privatized throughout continental Europe in the early to mid-1990s, which resulted in an increase in capital markets consulting work for top financial institutions and local and foreign investment banks. Since many banks had already established a foothold in nations outside of their home market, they were not previously opposed to cross-border business, but during this time, capital raising from foreign markets seemed to pick up speed. As a result of the listing of large European utilities on numerous stock exchanges, shares in these firms were also made available on foreign markets. It was a prosperous period for businesses that offered support services to the capital markets, as well as for the legal and banking sectors.

With initial public offerings and, in some circumstances, secondary and tertiary offers of shares in these state-owned companies, language services was one of those areas that experienced a major surge in demand for financial translation. Prospectuses (documents) for some of these ventures were being written in more than 20 different languages, providing regulatory and investor information. The deadlines were tight, and it was difficult to manage several languages and provide appropriate translations on schedule. With China's shift from a centralized to a market economy, the language business continued to accept and manage this problem long into the 2000s.

When China's state-owned corporations were privatized, localization firms were once more used to translate prospectuses for the global markets. What is the impact of the changing nature of retail banking on language service providers (LSPs)?

Although international banking relationships have long been a favored method for facilitating cross-border transactions, retail banking has always been more domestically focused than international. The old banking paradigm is currently under threat from the effects of increasing regulation as well as significant developments in technology and consumer behavior. To make sure their businesses not only survive but also thrive in a changing environment, language service providers (LSPs) are now being forced to adapt to the same problems.

Opportunities arise as industries change, especially for LSPs that have long had to interact with innovative technology, adjust to shifting laws, and engage customers proactively in order to create engaging multilingual content. The typical retail banking experience is evolving as challenger banks and new payment platforms arise. It's interesting to note that developing nations are leading the way in "banking the unbanked" since they aren't constrained by the legacy banking infrastructure and business practices that are common in developed markets. The physical presence of bank branches in developed economies is less of a necessity for customers, often controversially so, as governments offer regulatory licenses to banks with operating platforms designed for smartphones or tablets!

When the capital markets were more active in the middle of the 1990s, translation was done to make sure that investor and regulatory information was available to potential investors in text form. Additionally, leaflets promoting new financial services and products were distributed at bank branches, probably in conjunction with an in-person meeting. Customers are expecting that multilingual content be offered digitally as cloud-based banking services develop. Product instructions, legal documents, and marketing collateral must be provided in many languages because there are numerous digital payment gateways that enable payments across borders and in multiple currencies.

Millions of consumers who own mobile phones but do not have bank accounts or access to financial services now have access to financial services, opening up a whole new potential market for both the banking sector and LSP services. It will be necessary for challenger banks and digital payment providers to localize their websites so that users and potential new clients may learn about their services in a variety of languages as they expand into new regions. The goal is to make this information accessible and readable via mobile phones and tablets, regardless of whether it pertains to product information, marketing, legal, finance, or customer communications.

To engage with clients and their digital agencies, it will be crucial to have experience in software localization for mobile apps as well as worldwide digital marketing. Banking rules will play a role in the spread of these services across new countries as governments influence through regulation rather than ownership, and global LSPs will be required to support this expansion with financial translation services.

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