They say “money talks”, but does it speak the same language worldwide? This is where fintech localization helps all of us talk money, irrespective of language.

The numbers related to the fintech industry over the last three years are going sky high. Every fintech business owner or entrepreneur should think of localization before entering new markets globally and raising the profits their businesses deserve.

Fintech localization will help you build a global audience in diverse cultures and maintain a consistent brand voice in multiple markets.

Table of Contents:

1. Why Should Fintech Localization Be a Priority for Your Business?
2. How Localization Can Help Fintech Firms Establish a Strong Foothold in New Markets?
3. Are Fintechs Losing Users Because of Poor Localization?
4. How Poor Localization Could Affect Your Business?
5. Building Trust Through Fintech Localization
6. What Is Effective Fintech Localization and How Is It Done?
7. Three Challenges in the Fintech Localization Industry
8. Important Case Studies That Will Show You the Importance of Fintech Localization
9. Looking for a Fintech Localization Partner?

The current state of the market emphasizes the importance of fintech localization for businesses looking to expand and stay competitive in the rapidly evolving fintech industry.

In Middle East and North Africa (MENA) countries, for example, the fintech industry is a rising star. Governments are supporting the fintech ecosystem with free-zone initiatives all over Egypt, Bahrain, United Arab Emirates (UAE) and Saudi Arabia.

There is considerable interest from regional youth for crypto currency, with some countries showing openness to regulating and adopting it.

According to the fintech database at dealroom.co, the middle east achieved $819 million in the first half of 2022, which is equal to the whole of 2021, and 14 times more than in 2016.

Mordor Intelligence made a study on the MENA fintech market and found that:

These numbers are just the beginning. The MENA region is quickly becoming a hub for fintech innovation, and a recent report by the Arab Federation of Exchanges projected that the regional fintech market is growing at a compound annual growth rate of 30%, between 2020 and 2025. A large unbanked population, high mobile-phone penetration rates and a supportive regulatory environment are fueling this impressive growth. Additionally, a young tech-savvy population is driving the demand for digital payment solutions, online lending and for personal finance management tools. As more and more people in the region gain access to these fintech services, expect to see a continued surge in growth in the industry and an exciting future for fintech in the MENA region.

Localization is critical in helping fintech firms succeed in multiple markets. Localization helps these firms tailor services to the unique needs and preferences of their target audience. Localization is helping them gain traction to establish a loyal customer base.

Here is how:

Understanding local cultures and customs can help fintech firms develop products and services that are more relevant and appealing to their target markets, with the inclusion of attributes, such as language, local regulations and cultural sensitivities.

Fintech localization services are focused on tailoring businesses to the unique needs and preferences of specific regions and cultures. This involves a deep understanding of local customs, languages and regulations, which can vary significantly from country to country.

Delivering a superior user experience has a significant influence on driving forward success. Fintech firms that prioritize user experience and tailor their services to the preferences and habits of their target market are more likely to establish a loyal customer base. This includes optimizing user interface design, offering language backing and providing exceptional customer support services. By doing so, fintech firms can build customer trust, drive engagement and ultimately increase conversion rates. With user experience playing such a critical role in the success of fintech firms, it is vital for companies to invest in fintech localization, research and data analysis to better understand the needs of target audiences, as well as to continually refine and improve offerings based on customer feedback.

Localization services can help fintech firms ensure they are operating in compliance with local laws and regulations. By tailoring services to meet local regulations, fintech firms can minimize the risk of regulatory issues and build a strong reputation for compliance.

Localizing payment methods, for example, can help fintech firms comply with local regulations related to currency exchange or international money transfers. Similarly, offering language support and user-interface design services can help fintech companies comply with local consumer protection or data privacy requirements. This can help such firms avoid potential legal pitfalls and operate in accordance with local laws and regulations, as well as building a strong reputation for compliance and helping to navigate the complexities of local regulations more efficiently. Through proper localization, fintech firms can operate confidently in new markets, ensuring they meet the needs and expectations of local customers while also complying with local laws and regulations.

Are you losing your customers because of poor localization? According to PIF and HooYu, nearly 26% of fintech users are lost due to application abandonment, even though they know their customers.

Also, the number of users that might be lost during the onboarding process can increase if fintech localization is not robust. Loss of users is one of many possibilities due to poor localization. Here are further examples:

1. Revenue: Poor localization can reduce revenue because customers may be less likely to use products or services or recommend them to others. As explained by a CSA Research, companies that invest in localization see a 10% to 25% increase in revenue.

2. Reputation: In a survey by CSA Research, 56.2% of consumers stated that the ability to obtain information in their language is more important than price. Poor fintech localization can harm the reputation of your brand due to customers viewing your company as insensitive or uninterested in their needs.

3. Customer Acquisition: 72.4% of consumers spend nearly all their time on websites written in their own language. If your fintech product is not localized, you may struggle to acquire and retain customers in your target market.

4. In a study by Signicat, fintech companies reportedly lose about 26% of users due to application abandonment, with 37% of users abandoning fintech applications during the KYC process. This abandonment rate is higher than the abandonment rate for other financial services such as online banking or credit card applications.

Trust is an important factor for the success of any industry, with fintech all about how to handle customer money. This is why trust is essential.

Whether you are a company, an international bank or an innovative fintech, it is necessary to establish a connection with your users and appear responsible and legitimate in order to gain their trust.

Building a relationship with your customers requires lots of effort; however, poor localization can ruin the entire process. Effective fintech localization involves linguistic, cultural and local market aspects, including a complete adaptation of the values of your brand based on target audiences, to help you earn this trust and make your business thrive.

According to a report by Common Sense Advisory, consumers value the ability to obtain information in their language more than they value price; therefore, fintech localization is pivotal when communicating with customers in different countries. Regular translation needs to be improved, with specialized processes being required to make a striking first impression when going global. Companies need to ensure that their localization processes and target messages or assets achieve the same impact as in the market they were initially designed for.

Winning over customers by effectively communicating in their language is called “localization”. Good e commerce localization or well-localized global content does wonders for increased patronage, conversion rates and loyalty. This means more users and more revenue.

Effective fintech localization omits poor translation quality, incorrect or odd translations, instances of English phrasing that seem forced in the target language, or misused financial terms. All of these can result in issues with content. Effective fintech localization goes through the three following stages:

Preparation is vital at the beginning of the fintech localization process. This starts with comprehensive market research to understand the local regulatory requirements and the cultural nuances and language preferences of the target audience. Based on research, a localization strategy outlines the key objectives, processes, tools and resources that are necessary to effectively translate and localize fintech content for the target market. Next, comes the legal and compliance aspect to ensure that the fintech product or service complies with local regulations for the target market.

The primary focus of this stage is to ensure high-quality translations of fintech content for target markets. This is achieved as follows:

– By applying the client’s style guide and other approved materials to the target-language localization.

– By ensuring consistency and accuracy through technology such as translation memory (TM) and computer-assisted translation (CAT) tools, to ensure consistency across similar or identical content, in addition to updating these resources for long-term quality assurance.

– By using custom fintech software localization methods to optimize the user experience such as ePayments, numerical systems, currency formats, and units of measurement.

– The review process in unison with the client, in addition to providing back-translations and other reviewing procedures, help the client understand all adaptations.

This stage is where all the hard work and preparation pays off. It ensures that localized content and localized software are delivered on time and meets the highest quality standards. Once the final deliverables are ready, a thorough review with the client takes place to ensure all requirements are met.

Fintech localization and adaptation of financial technology content to local languages and cultures has become increasingly important as the industry continues to grow. This process presents several challenges, such as:

Fintech localization utilizes complex technical terminologies and requires a strong understanding of financial concepts, such as banking, investing and payments in order to accurately translate the content.

A lot of terminology has been added and regularly used in recent years that everyone should know about:

The fintech industry is known for its rapidly evolving nature, with new technologies and services emerging on a regular basis. This presents a significant challenge for translators because they need to stay up to date with latest developments and terminology in order to accurately translate content. This requires a deep understanding of the industry and a willingness to learn new concepts and technologies as they emerge. Translators need to be familiar with the latest fintech trends and be able to adapt their language and style to reflect these changes. Failure to keep up with recent developments could result in inaccurate translations, leading to user confusion or misinterpretation. As a result, fintech localization requires translators to be flexible and adaptable to stay current with this rapidly evolving industry.

Because fintech companies handle sensitive financial information that requires privacy and protection, translators in fintech localization are required to adhere to strict confidentiality and security measures to safeguard this information. This includes using secure communication channels such as encrypted emails and the safe storage of all data. Translators may also be required to sign non-disclosure agreements to ensure that sensitive information remains confidential.

The fintech industry is one of the fastest growing industries worldwide, with fintech localization services having become essential for international fintech firms. To illustrate the importance and impact of fintech localization, the following case studies showcase how localization has helped fintech companies to go global:

Revolut is a UK-based fintech company that offers various financial services, such as banking, payments and currency exchange. Over the last few years, it has expanded to Gulf Cooperation Council (GCC) countries in the MENA region, including the United Arab Emirates, Saudi Arabia and Bahrain. To do this, Revolut invested in fintech localization by adapting its website content, services and entire platform into local languages. It also navigated the complex MENA regulatory environment by obtaining the necessary licenses and by working closely with local regulators. As a result of these efforts, it has since gained a significant customer base within MENA, with the company continuing to expand its services and partnerships throughout the region.

TransferWise has expanded its services to several countries in the MENA region, including the United Arab Emirates, Saudi Arabia and Bahrain. Starting out in the UK, it offers money transfer services with transparent fees and competitive exchange rates.

TransferWise has been operating in the region since 2018 thanks to fintech localization, having helped it to quickly adapt to the market by translating its website and mobile app into Arabic and by using localized content and terminologies. The company also provides customer support in Arabic, and partners with local banks to facilitate transfers. Professional fintech localization has led to positive feedback from customers due to its transparent fees, competitive exchange rates and user-friendly platform.

N26 is a German-based digital bank that provides online banking services to customers in various countries, primarily Europe and the Americas. The expansion of N26 into several global markets is a testament to the importance of fintech localization. Here is why:

– Adaptation of its services to local markets to provide customers with a seamless and personalized experience.

– Localization of content and language services, enabling N26 to establish a strong brand presence in various countries and communicate its value proposition effectively to its customers.

– By focusing on fintech localization, its platform has enabled it to compete with traditional banks and other fintech companies in various markets and therefore establish a loyal customer base.