In establishing the Global Financial Inclusion Index, Principal^® aimed to develop a benchmark that would help deliver data-driven insights surrounding the many dimensions impacting people’s ability to access financial security. The 2023 Index continues to examine relative progress in 42 markets across individual indicators, pillars, and the globe. Now, the Index can bring year-over-year comparisons to life, along with a new absolute scoring system that reveals financial inclusion is helping improve globally across the measured regions.

However, the picture is a complex one and far from equal across different markets. Given the various drivers of financial inclusion, the most effective ways to address financial access are equally diverse. As a global business focused on improving financial security, we acutely feel this responsibility and take careful note of the trends we’re observing year over year.

Digital infrastructure is driving success.

In this year’s Index, we discovered the markets where financial inclusion is improving the fastest tend to be technology-enabled economies. Investments in digital infrastructure have led to an increase in mobile banking and real-time payments, which has resulted in better access to, and engagement with, financial products across a wider range of people. This challenges the financial services sector—and companies like ours—to continue innovating in the delivery of solutions and support, not limiting our focus on manufacturing those solutions. For example, including even more robust and engaging financial wellness resources and counsel alongside workplace retirement solutions and working closely with fintech platforms to encourage positive savings and future investing behaviors.

The U.S. still has work to do.

We also recognized the increase in the number of people who reported feeling financially excluded across the U.S. in the consumer sentiment survey. Although the U.S. financial system is a world leader when it comes to promoting financial inclusion, not all populations report having adequate access to these financial products and services. Reaching more people globally with relevant and affordable solutions, education, and support is a critical focus for Principal and for Principal^® Foundation, the philanthropic arm of our organization. Principal is continually listening to the over 60 million global customers we serve, building products and programs designed to elevate levels of financial security and inclusion. In the last two years, Principal Foundation has impacted more than 8 million people around the world by helping remove barriers and empowering people and communities to help build financially secure futures.

Employers need our support.

This includes helping businesses act as strong advocates for their employees’ financial well-being. Employers play a significant role in the financial stability and satisfaction of our communities. And employees recognize the outsized, critical role their employer plays. As consumer financial well-being is impacted by economic pressures and lack of access, so is the financial well-being of businesses. Our research points to a decline in employer support in more than a third of markets we track globally, so we see an opportunity to lean into our expertise within the business market. Those business customers working with us depend on our expertise and reliability in providing access to the products, services, and information they need to protect and support their own financial needs—and those of their workforce.

In the second year of the Index, we’re optimistic about the ongoing progress governments, financial systems, and employers are making across the globe to help more people gain access to the support they need to feel more financially secure.

Equipped with these insights, we remain committed to extending the dialogue on these important topics with public and private organizations and leaders, academia, and the not-for-profit sector.