Business Wire

Global Financial Inclusion Index from Principal® Develops Benchmark for Financial Security and Inclusion Across Global Economies

Share

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 Index provides 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.

Key findings

  • 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

1

Singapore (68.9)

33

Turkey (36.1)

2

United States (68.3)

34

South Africa (34.1)

3

Sweden (65.4)

35

Brazil (33.9)

4

Hong Kong (65.1)

36

Mexico (33.3)

5

Finland (64.7)

37

Italy (32.8)

6

Denmark (63.9)

38

Peru (32.7)

7

Australia (63.6)

39

Colombia (32.2)

8

Switzerland (63.4)

40

Nigeria (26.9)

9

Norway (63.1)

41

Ghana (22.2)

10

The Netherlands (59.8)

42

Argentina (19.2)

To read the full report and methodology, please click here.

To view a summary infographic, please click here.

About Principal Financial Group®

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.

Contact information

Melissa Higgins, 515-878-0133, higgins.melissa@principal.com  

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

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

Q4 Inc. Recognized as one of Canada's Top Growing Companies by The Globe and Mail23.9.2022 23:09:00 EEST | Press release

Q4 Inc. (TSX:QFOR), (“Q4” or “the Company”) is pleased to announce their ranking on the 2022 Report on Business of Canada’s Top Growing Companies. Canada’s Top Growing Companies ranks Canadian companies on three-year revenue growth. Q4 Inc. earned its spot with three-year growth of 220%. “We are honored to be recognized as one of Canada’s Top Growing Companies for the third consecutive year by The Globe and Mail,” remarked founder and CEO, Darrell Heaps. “We are extremely proud of the growth we have achieved together as a company and this recognition is a true reflection of the dedication our employees have to helping our clients win in the capital markets.” Canada’s Top Growing Companies is an editorial ranking that was launched in 2019. It aims to celebrate the boldest entrepreneurial achievement by identifying and bringing the accomplishments of innovative businesses in Canada to the forefront. In order to qualify for this voluntary programs; companies had to complete an in-depth ap

PCT International Hires Dynamic CFO23.9.2022 22:40:00 EEST | Press release

PCT International’s continued resurgence in the broadband and telecommunications market received a boost from the hiring of Simit Shah as Chief Financial Officer. With 20 years of domestic and global treasury, capital markets, and corporate finance experience, Shah is excited to showcase PCT’s strength to the market. Shah will influence the evaluation and structuring of financing strategies, leveraging his experience to drive business transformation from his previous roles. Shah holds a B.S. in Chemistry from Villanova University and an M.B.A from the University of Michigan Ross School of Business. “PCT’s 25-year commitment to innovation, made this an easy choice for me to join their robust team in Tempe,” said Shah. In his previous positions, Shah successfully negotiated, structured, and managed multiple financing facilities and strategies, including being an integral member of the team that transitioned the largest publicly traded proprietary education company to a privately held ent

GCCA: Cement and Concrete Industry Scales Up Carbon Capture, Utilisation and Storage (CCUS) Efforts to Accelerate Decarbonisation23.9.2022 19:30:00 EEST | Press release

The Clean Energy Ministerial CCUS (CEM CCUS) and the Global Cement and Concrete Association (GCCA) have today, at the first-ever Global Clean Energy Action Forum (GCEAF), announced an agreement that will help scale up the deployment of carbon capture, utilisation and storage (CCUS) throughout the cement and concrete industry, in a move to stimulate innovation, investment and increase the pace of decarbonisation efforts. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220923005359/en/ Major CCUS industry and government collaboration announced at Global Clean Energy Action Forum (GCEAF) in Pittsburgh, USA. Left to right: Thomas Guillot, CEO of the Global Cement and Concrete Association, Henriette Nesheim, Assistant Director General, Norwegian Ministry of Petroleum and Energy – and CEM CCUS Initiative Co-Lead from Norway, Brad Crabtree, Assistant Secretary, Fossil Energy and Carbon Management, US Department of Energy (Photo: Bus

Justin Boxford Appointed Global Brand President, Estée Lauder23.9.2022 16:00:00 EEST | Press release

Today, The Estée Lauder Companies (NYSE:EL) announced that Justin Boxford has been appointed Global Brand President, Estée Lauder, effective September 1, 2022. Justin succeeds Stéphane de La Faverie, whose promotion to Executive Group President was part of an organizational evolution announced last week. In his new role, Justin is reporting to Stéphane and will continue to serve on the company’s Executive Leadership Team (ELT). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220923005308/en/ Justin Boxford appointed Global Brand President, Estée Lauder; photo courtesy of Kevin Trageser. As Global Brand President, Justin will be responsible for driving Estée Lauder’s short- and long-term strategy, including innovation, product development, North America and international growth, consumer marketing and distribution evolution. He will partner closely with members of the global Estée Lauder leadership team to drive the brand’s su

XPENG G9 Equipped with Dual Automotive-Grade LiDAR Sensors from RoboSense23.9.2022 15:00:00 EEST | Press release

RoboSense, a world-leading provider of Smart LiDAR Sensor Systems announced XPENG G9 equipped with two RoboSense second-generation Smart Solid-state LiDARs (RS-LiDAR-M1). On September 21, XPENG Motors held the “G9 Flagship SUV Immersive Experience” online launch event and officially launched XPENG G9. XPENG G9 is positioned as “the world’s Fastest-Charging electric SUV”. It achieved a breakthrough and went going from development of “independent functions” to “global intelligence”. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220923005230/en/ XPENG G9 equipped with two RoboSense second-generation smart solid-state LiDARs, to realize full-scenario intelligent driver assistance. (Graphic: Business Wire) G9 further demonstrates XPENG’s innovation in the field of intelligence. From the early functions of autonomous parking, voice control to driver assistance, G9 uses XPENG’s second-generation ADAS, XNGP, equipped with two RoboS

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