Global Financial Inclusion Index from Principal ® Develops Benchmark for Financial Security and Inclusion Across Global Economies
Singapore is the world’s most financially inclusive market, alongside the U.S., Nordic Europe, and Hong Kong, according to the inaugural Global Financial Inclusion Index (Index) sponsored by Principal Financial Group®. The research, conducted by the Centre for Economics and Business Research and released today, examines how well a market’s respective government, financial system, and employers provide relevant tools, services, and guidance to enable greater levels of financial inclusion.
“Financial inclusion is foundational to global economic progress. As an organization focused on helping more people gain access to financial security, we believe inclusion is an integral component of a market’s ability to prepare for and recover from adversity, grow sustainably, and build a brighter future,” said Dan Houston, chairman, president, and CEO for Principal®. “The Global Financial Inclusion Indexprovides a rigorous, data-driven framework to track financial inclusion on a global scale. Through this we can identify the structural gaps in financial inclusivity and take steps to address them, along with many others, to help build a more productive and protected workforce and society.”
The Index examines 42 markets and scores them across three pillars — government support, financial system support, and employer support — using datapoints across public and survey-based sources.
- The government support pillar examines the degree to which governments promote and enable financial inclusion, considering data on public pension support, deposit and consumer protections, employment, education, and financial literacy levels, and online connectivity.
- The financial system support pillar reviews the availability and uptake of various financial products, services, and education, considering data on access to bank accounts and credit, maturation of financial technology and use of real-time payments, and the overall effectiveness of the financial services industry in promoting confidence and small to medium sized business growth.
- The employer support pillar evaluates the availability and impact of employer programs to improve employee financial wellbeing and inclusion across various dimensions such as employee pension contributions, employee insurance programs, and financial guidance.
In its first year, the Index is helping to develop a benchmark for financial security and inclusion across global economies.
- In general, developed economies tend to pool towards the higher end of the Index, and emerging and developing economies cluster at the bottom. Six of the top 10 markets for financial inclusion are European and, within this group, four are Nordic. Europe’s larger economies rank at the bottom of the table, with Italy as a particular outlier at 37th. The lower half of the ranking consists mainly of countries in Latin America, sub-Saharan Africa, and Asia. Argentina ranks last.
- Economies that provide strong support from their government and financial system tend to provide a lower level of employer support – and the reverse is also true. Developed economies typically score well for government and financial system support, whereas emerging economies generally score better for employer support.
- When considering this research on an investment basis, the markets analyzed can be broadly grouped into four categories – mature, forward-looking economies; mature, backward-looking economies; young, forward-looking economies; and reliant economies – each of which provides an indication of several of the short-, medium- and long-term risks to which economies are exposed. There are some outliers to these categories – primarily some of the largest economies including the U.S., China, and India – which do not fit neatly into a single category.
- The findings suggest financial inclusion may be a powerful indicator of next generation capital and wealth markets globally. When performance in each pillar is strong, it helps promote business growth and confidence and may lead to accelerated development of a capital market. These three pillars can provide insights into its overall economic maturity and development of a market and suggest ways to drive progress.
- Markets which rank highly for financial inclusion tend to also perform well on other societal factors such as food security, productivity, economic and social resilience, standards of living, and climate change adaption. There are strong, positive correlations between the Index rankings and the rankings of markets in several other indices which track the key factors affecting global populations today.
“The Index provides a data-driven, horizontal view for developed and emerging markets to learn from each other when it comes to fostering a financially inclusive citizenry,” said Kay Neufeld, head of forecasting and thought leadership at the Centre for Economics and Business Research.“We tracked the Index against metrics that follow some of the most significant trends facing society today – like food insecurity and climate change – and recognized a clear relationship between financial inclusion and those factors that contribute to a successful society.”
Global Financial Inclusion Index
Top 10 Scoring Markets
Bottom 10 Scoring Markets
United States (68.3)
South Africa (34.1)
Hong Kong (65.1)
The Netherlands (59.8)
To read the full report and methodology, please click here.
To view a summary infographic, please click here.
Principal Financial Group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 54 million customers1 plan, protect, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of America’s 100 Most Sustainable Companies2, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management3.” Learn more about Principal and our commitment to building a better future at principal.com.
1 As of June 30, 2022
2 Barron’s, 2022
3 Pensions & Investments, 2021
About Centre for Economics and Business Research (Cebr)
The Centre for Economics and Business Research is an independent consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, Cebr has been at the forefront of business and public interest research, providing analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies and trade bodies. For further information about Cebr please visit www.cebr.com.
© 2022 Principal Financial Services, Inc.
Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.
The Global Financial Inclusion Index is a proprietary model output based upon certain assumptions that may change, are not guaranteed, and should not be relied upon as a significant basis for an investment decision.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392. ©2022 Principal Financial Services, Inc.
To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.
Melissa Higgins, 515-878-0133, email@example.com
About Business Wire
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Enviva Releases White Paper on the Evolution of Modern Bioenergy in Heavy Industry Verticals3.10.2022 18:00:00 CEST | Press release
Today, Enviva Inc. (NYSE: EVA), the world’s leading producer of sustainably sourced wood biomass, published a white paper that discusses unlocking the future of biomass beyond fossil fuels into other industrial applications, including steel, cement, lime, chemicals, and sustainable aviation fuel (SAF), among others. While Enviva’s sustainably sourced biomass is predominately used today to decarbonize power and heat generation, modern biomass will increasingly be used to reduce emissions in these hard-to-abate sectors that are responsible for nearly one-third of global CO2 emissions as governments, companies, and industry endeavor to mitigate their climate change impacts through net-zero emissions goals. All sectors ‒ including energy, construction, transportation, aviation, and food systems ‒ are looking to rapidly decarbonize, and sustainably sourced biomass is the only technologically advanced, scalable, and market-ready product poised to substantially mitigate climate change and dec
DentalMonitoring Expands into Japan3.10.2022 17:53:00 CEST | Press release
New office in Tokyo; bringing smarter dentistry solutions to Japan. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221003005816/en/ DentalMonitoring ScanBox pro (Photo: Business Wire) DentalMonitoring, the leading global provider of smart dentistry solutions, is setting foot in Japan to serve the Asian market with its AI-powered remote monitoring solution and latest clinical data analysis platform DM Insights. Having been granted market authorization, the company headquartered in Paris, France, is now bringing its suite of intelligent solutions onto the Japanese market. From lead engagement and conversion to remote monitoring of all treatment modalities, DentalMonitoring has helped transform over 7,000 practices worldwide and over 1 million patients have already been using its ScanBoxᵖʳᵒ and 4.9 rated app, helping optimize their treatment experience. ScanBoxᵖʳᵒ will be available from Dental Monitoring Japan in October 2022.
AIT Worldwide Logistics Forms CRAF Partnership with Kalitta Air3.10.2022 17:02:00 CEST | Press release
Global supply chain solutions leader AIT Worldwide Logistics has entered into a new Civil Reserve Air Fleet (CRAF) partnership with Ypsilanti, Michigan-based Kalitta Air. The strategic alliance continues AIT’s longstanding designation as a CRAF-sponsored freight forwarder, enabling the company to continue critical supply chain support for United States Transportation Command (USTRANSCOM) missions, while also increasing access to global routes, capacity, and charters for customers. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221003005635/en/ AIT Worldwide Logistics forms CRAF partnership with Kalitta Air (Photo: Business Wire) “For more than 10 years, we’ve been proud and always at the ready to support USTRANSCOM through the CRAF program,” said AIT’s Chief Business Officer, Greg Weigel. “As AIT continues to grow our global footprint and scope, securing a CRAF partnership with an airline that has similar global reach, with
Survey Reveals Tech Trust Gap Amongst UK Bank Customers3.10.2022 15:38:00 CEST | Press release
New research by Mitek, a global leader in digital identity and digital fraud prevention, and YouGov has found that banking customers’ trust in technology remains low in the United Kingdom. Only half (52%) of UK bank customers feel that technology like artificial intelligence (AI) and biometrics positively impacts their trust in banks, and only 5% would prefer all interactions with AI/automated systems when engaging banks. These findings are based on a survey of more than 2,200 adults across age groups and UK regions. The industry has undergone a rapid digital transformation in the last few years, with Gartner predicting IT spending by banking and investment services firms growing by 6.1% by end of 2022, to US$623 billion worldwide. While nearly eight in 10 (79%) customers are satisfied with their bank’s digital experience (rating it “good”, “very good”, “or “excellent”), banks are in danger of facing a market-driven stalemate in their research and development should the tech trust gap
Bacardi Announces Leadership Moves to Drive Future Growth3.10.2022 15:30:00 CEST | Press release
Bacardi Limited, the largest privately held spirits company in the world, today announces a series of C-suite talent moves within global commercial and finance and the North America business. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221003005330/en/ Pete Carr to become Bacardi Executive Vice President and Global Growth Officer (Photo: Business Wire) CurrentRegional President for North America Pete Carr will take on the newly created role of Executive Vice President and Global Growth Officer. Pete will be responsible for commercial excellence and strategy, route-to-market models, digital commerce, and on-trade relationships for the family-owned spirits business. Pete comes armed to spearhead continued commercial success for Bacardi, with a lifetime of spirits experience and more than eight years at the helm of one of the company’s largest markets. Pete has showcased fearlessness and a founder’s mentality throughout his
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.Visit our pressroom