Strong support from the government and the financial system often results in lower employer support

Note: Below is a featured key finding from the 2022 Global Financial Inclusion Index.

A key finding of the Index suggests markets that have strong support from the government and the financial system are usually developed markets and tend to have a lower level of employer support.

For example, the U.K. ranks ninth for government support and 10th for financial system support, but 39th for employer support. Similarly, Canada ranks 12th for government support, seventh for financial system support, but 37th for employer support. Australia ranks 10th and second, but 31st for the same pillars respectively.

However, the opposite is true for scores in the employer support pillar. Here we see high-income economies performing worse than emerging markets. Six out of the bottom 10 markets for employer support are developed economies, including the U.K., Japan, and New Zealand. Conversely, with the exception of the U.S., Hong Kong, and Norway, the top 10 economies in this pillar are largely developing markets such as Vietnam, India, Malaysia, and Thailand.

Again, where emerging economies rank highly on employer support, they rank comparatively poorly on government and financial system support. Vietnam ranks first for employer support but 25th and 39th for government and financial system respectively. Similarly, India ranks third for employer support but 37th for government and 17th for financial system support.

Our interpretation of this data is that given the relatively affluent populations and the comparatively effective safety nets afforded by the governments and financial systems in developed markets, the need for employers to ensure the financial inclusion of their employees is potentially considered less urgent. By contrast, in the absence of effective support from government and the financial system in emerging markets, there’s a more immediate requirement for employers to promote financial inclusion.

To read more Index insights or the full report, see Data & Resources.