The four Nordic markets analyzed—Sweden, Finland, Denmark and Norway—all rank in the top 10 for overall financial inclusion, driven by strong performances in the government support pillar.
Note: Below is a featured key finding from the 2022 Global Financial Inclusion Index.
Highlights
- The four Nordic markets analyzed all rank in the top 10 for overall financial inclusion, driven by strong performances in the government support pillar. The scores for these markets reflect the link between strong regulatory governance and the soundness of a market’s financial system.
- All Nordic markets also rank in, or just outside, the top 10 for the financial system pillar.
Full Analysis
The four Nordic markets analyzed—Sweden, Finland, Denmark, and Norway—all rank in the top 10 for overall financial inclusion. This is driven by strong performances in government support, with all four Nordic markets ranking in the top six under this pillar, along with Singapore (first) and Switzerland (third).
Given that the Nordic model is renowned for its promotion of economic equality and generous welfare programs, their elevated positions within the Global Financial Inclusion Index are not unexpected.
Indeed, aspects of the features associated with the Nordic economic model are reflected in the Index. For instance, all four Nordic markets rank highly in the state of public pensions indicator, attaining scores in the range of 77 to 100. Meanwhile, Denmark, Sweden, and Norway all see high rates of financial literacy, with each market scoring 100 in the financial literacy levels indicator, the highest possible score. Finland ranks slightly lower, albeit with a score of 83.
Several academic studies and research have focused on the inextricable link between strong regulatory governance and the soundness of a market’s financial system.1 This link is evident in the data pertaining to the Nordic markets.
It’s reasonable to link high levels of government support for financial inclusion with correspondingly high levels of financial system support, given the effect of regulatory governance on ensuring the robustness of a financial system.
The Nordic markets, along with Singapore, are prime examples of this relationship, with Sweden, Denmark, and Finland ranking in the top 10 for the financial support pillar. Norway, meanwhile, ranks just outside the top 10, at 12th. The Nordic markets are among the top scoring in the access to bank accounts indicator, with the lowest score among the four standing at 99.7. With the exception of Denmark, which scored 50.3, the other three performed also exceptionally well in the access to credit indicator, with scores of 78.8 for Sweden, 80.9 for Norway, and 91.7 for Finland.
To read more Index insights or the full report, see Data & Resources.
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