1、Global Financial Inclusion Index 2022Developing the benchmark for financial inclusion and security across global economiesSingapore(pictured above)ranked No.1 for financial inclusion out of 42 markets analyzed,reflecting strong government and financial system support.2022 Global Financial Inclusion

2、Index 32 ACCORDING TO THE WORLD BANK,FINANCIAL INCLUSION IS DEFINED AS:“individuals and businesses having access to useful and affordable financial products and services that meet their needstransactions,payments,savings,credit,and insurancedelivered in a responsible and sustainable way.”11 World Ba

3、nkTable of contentsForeword by Dan Houston,chairman,president,and CEO of Principal Financial Group 4Executive summary 6Defining the pillars of financial inclusion 8Methodology 102022 results and analysisThe Global Financial Inclusion Index 2022 12“Financial inclusion as a powerful indicator of next

4、generation capital and wealth markets across the globe”Principal Insights by Kamal Bhatia,chief operating officer of Principal Asset Management 18Examining employer support by sector 20Employer support within global industries 24“Bridging the financial inclusion gap among U.S.employers:Opportunities

5、 and challenges to fostering greater financial inclusion in small businesses”Principal Insights by Amy Friedrich,president of U.S.Insurance Solutions at Principal Financial Group 26Financial inclusion for economies and their populations 28“Analyzing risks to resilience and growth through the lens of

6、 financial inclusion”Principal Insights by Seema Shah,chief global strategist of Principal Asset Management 30Populations perceptions of financial inclusion Analysis:Key trends in the relationship between the Global Financial Inclusion Index and populations perceptions of financial inclusion in thei

7、r market 36Spotlight on the United States 40Epilogue by Dan Houston 46Appendices 502022 Global Financial Inclusion Index 54 ForewordDAN HOUSTON Chairman,president,and CEO of Principal Financial GroupFinancial inclusion means individuals and businesses have access to useful and affordable financial p

8、roducts and services to meet their needsfrom savings,credit,and insurance to education and adviceand that these tools are delivered in a responsible and sustainable way.In our view,financial inclusion is foundational to financial security and global economic progress.As an organization focused on he

9、lping more people access financial security,we believe inclusion is an integral component of a markets ability to prepare for and recover from adversity,grow sustainably,and build a brighter future.As global economies continue to grapple with the ongoing impact of the pandemic,war in Ukraine,commodi

10、ty scarcity,and rising inflation,the challenge of fostering financial inclusion around the world has never been more relevant or urgent.As a key step in helping address this challenge,we partnered with the Centre for Economics and Business Research(Cebr)to develop a robust measurement framework to t

11、rack financial inclusion on a global scalethe Global Financial Inclusion Index(Index).In our inaugural year,we discovered several interesting insights on a market-by-market basis.Overall,very few markets score consistently high across all three pillars(government,financial system,and employer suppor

12、t).Even in the top ranked economies,there are still identifiable weak points.This suggests there is a significant opportunity to provide greater support to enable financial inclusion across all pillars.The scores in each pillar serve as an initial benchmark against which the Index will measure progr

13、ess on a regular basis.So,how do we move the needle?When considering the data holistically,there were three main takeaways that stood out as integral to improving financial inclusion around the world.Responsibility for a markets financial inclusion cannot be shouldered by one system;it lies in findi

14、ng a balance between government,financial system,and employer support.Strengths and weaknesses in these systems vary,but a balance of public and private sector support is crucial to ensure a financially inclusive society which can drive broader economic growth and productivity.The Index showed marke

15、ts that provide strong support from the government and the financial system tend to provide a lower level of employer supportand vice versa.Only five markets out of 42Singapore,the United States,Hong Kong,Finland,and Norwayranked in the top 15 across every pillar analyzed.Only Hong Kong ranks in the

16、 top 10 across every pillar.The financial system must address its perception problem.Despite the Index demonstrating how a well-functioning financial system can benefit financial inclusion in a market,the survey results on how people perceive the industry tell a different story.There is a large gap

17、between how the Index ranks markets on the impact of the financial system on inclusion versus how individuals in each market feel they are included in the financial system.We interpret this to mean theres little understanding about the role,actions,and contributions of financial companies in driving

18、 financial security.As an industry,we must better communicate how the products and services we develop can help people protect and grow their financial well-being,and to consider what additional support we can offer to help ensure these solutions are relevant and useful.Improving financial inclusion

19、 can help combat wider societal concerns.The United Nations identifies financial inclusion as an enabler for economic growth as well as a key component in several of its 2030 Sustainable Development Goals.We dug deeper into this by analyzing the Global Financial Inclusion Index against indices which

20、 track some of the most significant forces facing society today:food security,standards of living,and climate change,to name a few.The strong positive correlations within the research encourage us to consider how improving access to relevant financial tools,services,and advice might help markets mak

21、e progress against other societal concerns such as hunger,climate resiliency,and overall health and well-being.As we look ahead,the Index will enable Principal and our partners to take a more nuanced and informed approach to financial inclusion as a core component of financial security.We will track

22、 over time how financial inclusion increases or decreases around the world.The use of data-driven insights will allow a clearer understanding of the barriers to financial security and produce alternative pathways that broaden access to financial solutions and support.Principal believes financial sys

23、tems should help enable long-term financial security for more people and businesses.The Indexs holistic analysis across the three pillars of support will help us to identify the structural gaps in financial inclusion globally and how to address them,thereby building a more productive and protected w

24、orkforce and society.We intend to use this research to determine impactful collaboration opportunities to help drive positive change and will actively engage and encourage others to do the same.We hope you find the results of the inaugural Index thought-provoking and useful.2022 Global Financial Inc

25、lusion Index 76 Executive summaryThe Global Financial Inclusion Index is built around three pillarsgovernment,financial system,and employer supporteach of which consists of multiple indicators.The methodology,developed by the Centre for Economics and Business Research(Cebr),combines various data sou

26、rces into one unified measure of financial inclusion at the market level.Top 10 markets for financial inclusion1.Singapore2.United States3.Sweden4.Hong Kong5.Finland6.Denmark7.Australia8.Switzerland9.Norway10.The NetherlandsKey findingsSingapore tops the Index,fueled by strong scores in the governme

27、nt and financial system support pillars.The United States ranks a close second,and Argentina ranks last out of the 42 markets analyzed.Markets that provide strong support from the government and the financial systemusually developed economiestend to provide a lower level of employer support.Markets

28、that have stronger employer support scoresusually emerging economiestend to have lower scores in the government and financial system pillars.There are notable exceptions which we will explore in greater detail in this report.Developed economies pool at the high end of the Index,and emerging and deve

29、loping economies cluster at the bottom.The four Nordic markets analyzedSweden,Finland,Denmark,and Norwayrank in the top 10 for overall financial inclusion,driven by strong scores in government support.While six of the top 10 economies are European,Europes larger economiesthe United Kingdom,Germany,F

30、rance,Spain,and Italyfall lower in the rankings.There is a significant range of overall financial inclusion scores for Asian economies.Singapore and Hong Kong rank in the top 10,however markets such as Indonesia and Vietnam rank 28th and 30th respectively.Latin America and sub-Saharan Africa rank lo

31、wer for financial inclusion compared to other regions,largely driven by weaker scores in government support.Eight out of the bottom 10 markets are in these two regions,including the bottom five.Understanding the role and impact of the three pillars underpinning financial inclusion offers valuable in

32、sight into the economic resilience of different regions and indications about those which may be poised to experience an acceleration in their development into real capital and wealth markets.Analyzing financial inclusion can offer investors insight into the degree to which economies are able to man

33、age risks and sustain future financial shocks.Observing the financial inclusion scores of different markets,we believe there are four distinct categories that provide an indication of some of the short-,medium-,and long-term risks to which economies are exposed.These categories are:mature forward-lo

34、oking economies,mature backward-looking economies,young forward-looking economies,and reliant economies.The outliers to these categories are major global economies,such as the U.S.,China,and India.There are strong,positive correlations between the Index rankings and the rankings of markets in severa

35、l other indices which track these key factors affecting global populations today.Markets that 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.Employers wit

36、hin professional sectors with typically higher wages,such as financial services,information management,and real estate,reported providing employees with greater support and tools to enable financial inclusion compared to industries that tend to be lower wage and more likely to employ informal and/or

37、 part-time workers like retail,leisure and hospitality,and personal services.In the U.S.,large businesses report higher levels of financial support and benefits(guidance,insurance,pension/retirement contributions,and pay initiatives)than their small and midsize counterparts.Despite ranking second fo

38、r overall financial inclusion,the U.S.consumer survey data strongly indicates theres uneven access to financial security across gender and racial demographics:2 Women report feeling more excluded from the financial system than men.Black and Hispanic communities in the U.S.find it harder than white c

39、ommunities to access financial products,tools,services,and advice.People in full-time employment feel they have better access to financial support than those who work part-time.2 The research only collects this level of demographic detail in the U.S.Explore an interactive map of the findings,market-

40、specific fact sheets,and additional insights into financial inclusion at Global Financial Inclusion Index 98 Defining the pillars of financial inclusionThe broad-based and complex nature of financial inclusion implies that there is no single,catch-all metric that can be employed to observe the state

41、 of financial inclusion globally.As such,the Index is built around three clearly defined pillarsgovernment support,financial system support,and employer supporteach of which consists of multiple indicators.The pillarsGOVERNMENTSUPPORTEvaluates the degree to which governments promote financial inclus

42、ionFINANCIAL SYSTEM SUPPORTExamines the availability and use of various types of financial products and services that are central to financial inclusionEMPLOYER SUPPORTRelates to the level of support employers provide their employees The government support pillar examines:the state of public pension

43、s and retirement offerings,the existence and coverage of deposit protection schemes,the scope of consumer championing regulations,employment levels(adjusted to account for informal employment),the awareness and uptake of government-mandated pension schemes,education levels,the complexity of corporat

44、e taxation systems(used as a proxy for the complexity of income taxation systems due to lack of reliable data for the former),the availability and scope of government-provided financial education,relative levels of financial literacy across societies,and the levels of online connectivity in each mar

45、ket.The financial system support pillar scores markets on:their volume of real-time payments(weighted by population),relative levels of access to credit,borrowers and lenders protection rights,access to bank accounts,developments made in the financial technology space,how well the financial system i

46、n each market enables small and midsize enterprises to thrive,and the overall effectiveness of making financial services/products accessible to businesses,organizations,and individuals.Lastly,the employer support pillar examines the efficacy of business support to employee financial well-being and i

47、nclusion across various dimensions such as:employee pension and retirement contributions,employee insurance programs,and employer pay initiatives.The Index market scores are accompanied by two sector indices,which compare markets through the lens of the performance of two main industry groupings(eit

48、her services or production and construction)in promoting financial inclusion,measured through the employer support pillar.Table 1 defines the Index indicators,which form its building blocks.3 The righthand column shows which pillar each indicator belongs to.Indicators within each category are weight

49、ed to calculate the pillars score.Each market receives a score reflecting its place in relation to the others.Table 1:List of indicators used in the Global Financial Inclusion IndexIndicator nameIndicator descriptionSource(s)PillarState of public pensionsThe adequacy,sustainability,and integrity of

50、its public pension systemMercer CFA Institute Global Pension IndexGovernment supportDeposit protection schemesQuality and coverage of deposit protection schemesEconstor Deposit Insurance System Design ReportIMF Deposit Insurance DatabaseGovernment supportConsumer championing regulationsLaws and regu

51、lations which prioritize financial protection for consumers such as data privacy and protection,fraud protection,and trading standardsCebr Global Survey of Business Management Teams(See Appendix D)Government supportEmployment levelsLevels of employment,including informal employmentWorld BankGovernme

52、nt supportAwareness and uptake of government-mandated pension schemesAwareness and uptake of government-mandated retirement/pension schemes and sign up optionsCebr Global Survey of Business Management Teams(See Appendix D)Government supportEducation levelsEducation levels and attainment of populatio

53、nOECD Programme for International Student Assessment ScoresGovernment supportComplexity of corporate taxation systemsComplexity of tax system(using complexity of corporate income tax system as a proxy)Tax Complexity IndexGovernment supportAvailability of government-provided financial educationThe qu

54、ality of government-provided guidance and resources for businesses to support employees around financial mattersCebr Global Survey of Business Management Teams(See Appendix D)Government supportFinancial literacy levelsShare of population considered financially literateS&P Global Finlit SurveyGovernm

55、ent supportOnline connectivityFixed broadband subscriptions per 100 peopleMobile cellular subscriptions per 100 peopleWorld BankGovernment supportReal-time transactionsVolume of real-time transactions per capitaACI Prime Time ReportFinancial system supportAccess to creditEase of access to loansWorld

56、 Economic Forum Global Competitiveness IndexFinancial system supportBorrowers and lenders protection rightsDegree of legal protection of borrowers and lenders rightsWorld Economic Forum Global Competitiveness IndexFinancial system supportAccess to bank accountsPercentage of population with bank acco

57、untWorld BankFinancial system supportPresence and quality of fintechsQuantity and quality of fintech businessesFindexable Global FinTech RankingsFinancial system supportEnabler of small/medium enterprise(SME)growth and successExtent to which businesses believe the financial system enables SMEs to gr

58、owCebr Global Survey of Business Management Teams(See Appendix D)Financial system supportEnabler of general business confidenceExtent to which businesses see financial system as an obstacle or helpExtent to which businesses are satisfied with financial services/products currently at their disposalCe

59、br Global Survey of Business Management Teams(See Appendix D)Financial system supportProvision of guidance and support around financial issuesExtent to which businesses/organizations support their employees in common financial practices Cebr Global Survey of Business Management Teams(See Appendix D)

60、Employer supportEmployee pension/retirement contributionsExistence and scope of pension contributionsCebr Global Survey of Business Management Teams(See Appendix D)Employer supportEmployee insurance schemesExistence and scope of insurance provided by businesses/organizationsCebr Global Survey of Bus

61、iness Management Teams(See Appendix D)Employer supportEmployer pay initiativesExistence and scope of initiatives provided by businesses/organizations to support employees with their financesCebr Global Survey of Business Management Teams(See Appendix D)Employer support3 For further technical details

62、 and sources of indicators,please see Appendix.2022 Global Financial Inclusion Index 1110 MethodologyThe Global Financial Inclusion Index methodology,developed by Centre for Economics and Business Research(Cebr),combines various data sources into one unified measure of financial inclusion at the mar

63、ket level.Structurally,the Index is split into three pillars(government,financial system,and employer support),which in turn consist of a varying number of indicators.An indicator can consist of a single or multiple variables derived from a combination of publicly available quantitative data sources

64、 and survey-based data.The data points are combined to provide an indicator score,subsequent pillar score,and headline Index ranking by market.Scores for each market are generated based on its performance as measured by the particular indicator.For each indicator we follow the same steps,allowing us

65、 to assign a value between 0 and 100 to each market.The values are relative to each other.In order to account for outliers,we check each data point to determine if it falls outside of the mean+/2 standard deviations(SD)range.If it does,we assign the market a value equal to either mean+2 SD or mean 2

66、 SD.For each indicator,scores are normalized within a range from 0 to 100.Given that a higher overall Index score indicates better performance,for indicators and sub-indicators where a lower figure signifies a better performance(e.g.,estimates for informal employment output),we use the inverse of th

67、e data point or its negative equivalent.Once we assign scores between 0 and 100 to each market for each indicator based on the previous steps,we weight indicators to calculate the overall pillar score.These are then aggregated into the overall Index score.Here,our default approach is to use an equal

68、 weighting for indicators and pillar;given that the Index has three pillars,each should receive a weight of 33%.However,there are cases when it can be justified to deviate from this default assumption.With the Global Financial Inclusion Index,we employed a weighted approach to give greater weight to

69、 the government and financial system support pillars.This is because the employer support pillar is based exclusively on survey data.While the survey data is an important part of the data inputs required for the Index,we acknowledge that the information based on robust secondary data sources should

70、be attributed a greater weight,as it is more likely to reflect an objective assessment of the respective measures.For the same logic we have also assigned a lower weight to the survey-based indicators within pillars.This helps minimize any potential bias introduced through market-specific answer pat

71、terns in the survey results.This approach provides a unique market score for each metric,which allows us to present separate figures for each indicator and pillar as well as an overall market score.2022 results and analysis2022 Global Financial Inclusion Index 1312 The Global Financial Inclusion Ind

72、ex 2022RESULTS OVERVIEW Singapore tops the overall Global Financial Inclusion Index,ranking first out of 42 markets with a score of 68.9,fueled by strong scores in the government support and financial system support pillars.The United States ranks a close second,with a score of 68.3.Developed econom

73、ies pool at the high end of the Index,and emerging and developing economies cluster at the bottom.The four Nordic markets analyzedSweden,Finland,Denmark,and Norwayall rank in the top 10 for overall financial inclusion,driven by strong scores in government support.All four Nordic markets rank in the

74、top six under the government pillar,along with Singapore(first)and Switzerland(third).While six of the top 10 economies are European,Europes larger economiesthe United Kingdom,Germany,France,Spain,and Italy fall lower in the rankings.The U.K.is 13th with a score of 56.9,between New Zealand and Israe

75、l.Germany is 15th(56.2).France is 23rd(45.5).Spain is 29th(42.3).Italy(32.8)is Europes biggest outlier37th,between Mexico and Peru.Theres a large range of financial inclusion scores for Asian economies.Singapore and Hong Kong rank in the top 10.However,markets such as Indonesia and Vietnam rank 28th

76、 and 30th respectively.The lower half of the table consists mainly of markets in Latin America and sub-Saharan Africa.Eight out of the bottom 10 are located in these two regions,including the bottom five markets.Chile is the highest ranked Latin American market at 24th and Kenya is the highest ranki

77、ng sub-Saharan African market at 31st.These are the only markets from these two regions outside of the bottom 10 in the Index.A key factor in the two regions comparatively low scores is the government support pillar.This reflects the extensive literature establishing a clear link between economic de

78、velopment and financial inclusion.4 442403026323353983729232527164“How Financial Inclusion is Driving Fairer Growth in Emerging Markets,”Lazard Asset Management,2021Table 2:Markets ranked by financial inclusion scoresRankMarketScoreGovernment support score

79、 and rankFinancial system supportscore and rankEmployer supportscore and rank1.Singapore68.8569.45170.17360.23142.United States68.2856.951476.72181.2823.Sweden65.4465.29568.91450.52234.Hong Kong65.1362.10867.12669.8585.Finland64.6666.91262.42964.62116.Denmark63.8765.01664.31856.77197.Australia63.625

80、9.101073.14241.17318.Switzerland63.3766.67361.081158.86169.Norway63.0866.19459.441265.491010.The Netherlands59.8564.40757.931447.972411.Canada59.5658.431266.51733.373712.New Zealand58.5858.981167.47516.834113.United Kingdom56.9259.34961.841023.943914.Israel56.8356.981356.861656.022115.Germany56.2056

81、.271558.941343.542716.Taiwan53.5749.492056.871557.131817.China53.2650.051852.771869.94718.United Arab Emirates51.2349.372150.152164.501219.Thailand50.0445.262350.352070.16620.Malaysia49.7044.942449.612371.57521.Ireland48.5954.221647.282429.103822.Japan47.7151.321751.071916.394223.France45.4747.47224

82、3.932743.352824.Chile45.4049.511942.722838.963525.Poland44.8642.842744.032657.661726.India44.5826.683754.531780.38327.South Korea44.1543.902649.952219.234028.Indonesia43.3441.032941.983059.821529.Spain42.2842.662842.592939.153430.Vietnam41.2544.162528.083987.41131.Kenya40.1034.253345.732541.083232.S

83、audi Arabia38.5137.883031.093674.71433.Turkey36.0731.013434.173467.32934.South Africa34.2634.963132.973536.953635.Brazil33.9427.353635.683355.772236.Mexico33.3225.513938.433145.512537.Italy32.8134.723228.703842.722938.Peru32.6628.983530.063760.871339.Colombia32.2125.723836.433242.433040.Nigeria26.85

84、21.904025.294056.182041.Ghana22.2017.814222.454140.903342.Argentina19.1721.384111.224244.96262022 Global Financial Inclusion Index 1514 Assessing the three pillars of financial inclusionGovernment support Seven out of the top 10 ranking markets for government support are Northern European.All market

85、s ranking in the bottom 10 for the government pillar are emerging or frontier markets.The deposit protection scheme provision and online connectivity indicators are where markets most commonly receive low scores within the 42 markets analyzed.Employment levels,consumer championing regulations,and aw

86、areness and uptake of government-mandated pensions/retirement and savings plans are the indicators where markets most commonly receive high scores.Financial system support All of the top 10 ranked economies in this pillar are developed markets.Four are in Europe,and two are in Asia.Italy is the only

87、 developed market ranking in the bottom 10.Access to bank accounts,the presence and quality of fintechs,and access to credit are the indicators where markets most commonly receive high scores while the real-time payment transactions indicator is far and away the indicator where most markets score th

88、e lowest.Employer support The top markets for employer support are largely emerging markets with the exception of the U.S.,Hong Kong,and Norway.Six out of the bottom 10 markets within this pillar are developed economies.Emerging markets dominate in the insurance scheme indicator,with Vietnam,Thailan

89、d,and Malaysia ranking first,second,and third respectively.Japan,New Zealand,and the U.K.rank among the bottom three.For pension contributions,five out of the top 10 ranked markets are in Asia or Southeast Asia:China,India,and Vietnam are second,third,and fourth respectively.The U.S.ranks first.Mark

90、ets in Africa make up three out of the bottom 10 alongside Japan and South Korea.Professional sectors with typically higher wages,such as financial services,information management,and real estate,reported providing employees with greater support and tools to enable financial inclusion compared to in

91、dustries that tend to be lower wage and more likely to employ informal workers like retail,leisure and hospitality,and personal services.In the U.S.,large businesses report higher levels of financial support and benefits(guidance,insurance,pension/retirement contributions,and pay initiatives)than th

92、eir small to midsize counterparts.KEY THEME NO.1Strong support from the government and the financial system often results in lower employer support.Full analysisMarkets that have strong support from the government and the financial system are usually developed markets and tend to have a lower level

93、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 31s

94、t 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.C

95、onversely,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 syste

96、m 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.Key insightOur interpretation of this data is that given the relatively

97、 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 f

98、rom government and the financial system in emerging markets,theres a more immediate requirement for employers to promote financial inclusion.KEY THEME NO.2Singapores top position in the Index is linked to high performance in two pillars.The No.1 ranking reflects strong scores in government support a

99、nd financial system support,where it ranked first and third respectively.Singapore has the least complex tax system among all the markets in the Index.It ranks second for education levels and access to credit but lower for online connectivity,enabler of small and medium enterprise(SME)growth and suc

100、cess,and enabler of general business confidence.Singapores comparatively low position in the employer support pillar(14th)is the primary reason the market does not attain an even higher overall score.Full analysisSingapores No.1 position is reflective of its robust performance in the government supp

101、ort and financial system support pillars,where it ranked first and third respectively.Its high score in the former is partly due to its streamlined corporate tax system;the data shows Singapore has the least complex system among all the markets in the Index.Singapore separates itself from the other

102、top five ranked markets in the government pillar with strong scores in the education and employment indicators.In particular,Singapore attained an indicator score of 90.6 for education levels,placing it second,just behind China.Key insightAccording to Kay Neufeld,director and head of forecasting at

103、Cebr,having a relatively less complex corporate tax system is a common theme among four of the top five performing markets in the Global Financial Inclusion Index,with the U.S.being the only exception,making the complexity of corporate taxation systems indicator a reliable predictor of where a marke

104、t ranks in the government support pillar.2022 Global Financial Inclusion Index 1716 However,Singapore performs relatively less well for the availability of government-provided financial education and deposit protection schemes indicators,which create a drag on its otherwise high government support r

105、atings,with ranks of 24th and 37th respectively.For online connectivity,Singapore ranked sixth but still attained a relatively low score of 54.8.By contrast,Hong Kong ranked first for online connectivity with a score of 95.4.The online connectivity indicator is based on fixed broadband subscriptions

106、(per 100 people)and mobile cellular subscriptions(per 100 people).Singapore has 25.1 and 144.1 people per broadband and mobile subscription,whereas Hong Kong has 38.3 and 291.7,highlighting the divide in online connectivity.Conversely,the markets high ranking in financial system support can be expla

107、ined by relatively easier access to credit,a greater share of the population having access to bank accounts,and the quality of developments in the fintech space.That said,Singapore lags in some other indicators that make up the financial system pillar.In particular,it scores somewhat poorly in the e

108、nabler of SME growth and success and enabler of general business confidence indicators,reflecting relatively lower reported business confidence in the financial system.Singapore ranks 10th in the real-time transactions indicator but with a low score of just 24.3,implying the use of real-time transac

109、tions is not yet very prevalent.Cebr points to relatively low online connectivity in the market as a potential barrier to increasing the volume of real time transactions.While not in the top 10,Singapore is 14th out of 42 for employer support,scoring well for employee pension contributions(ranked si

110、xth overall)but lower in the rest of the pillars indicators.KEY THEME NO.3Resilient government support ushers Nordics into the top 10.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

111、these markets reflect the link between strong regulatory governance and the soundness of a markets financial system.All Nordic markets also rank in,or just outside,the top 10 for the financial system pillar.Full analysisThe four Nordic markets analyzedSweden,Finland,Denmark,and Norwayall rank in the

112、 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).Key insight“Given the Nordic model is renowned for its promotion of economic equ

113、ality and generous welfare programs,their elevated positions within the Global Financial Inclusion Index are not unexpected,”says Kay Neufeld,director and head of forecasting at Cebr.Indeed,aspects of the features associated with the Nordic economic model are reflected in the Index.For instance,all

114、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

115、 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 markets financial system.5 This link is evident in the data pertaining to the Nordic markets.Its reasonable to link

116、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 Swede

117、n,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 Denmar

118、k,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.5 “Does Regulatory Governance Matter for Financial System Stability?An Empirical Analysis”(PDF)KEY THEME NO.4Latin America and s

119、ub-Saharan Africa are among the lowest ranking for financial inclusion.In these regions,the relatively low scores for government support for financial inclusion are correlated with similarly low scores for financial system support,reflecting the relationship between regulatory governance and the sou

120、ndness of the financial system which we saw reflected positively in the Nordics.The rankings of these regions also reflect the impact of economic downturns on business confidence in the financial system.Full analysisEight out of the bottom 10 ranked markets for overall financial inclusion are locate

121、d in Latin America and sub-Saharan Africa,including the bottom five.The highest ranked markets in these two regions are Chile at 24th and Kenya at 31st.Looking at the underlying data,a key factor in the regions comparatively low scores is the government support pillar.Key insight“Given that a majori

122、ty of these markets in Latin America and sub-Saharan Africa are emerging or frontier,we can expect government support for financial inclusion to be less effective than the support provided by governments in developed economies.This is consistent with the academic literature which has found a strong

123、relationship exists between nations development,economic growth,stability,and the education system.6 Indeed,while Italy also ranks in the bottom 10,its score in the government support pillar,at 34.7,is markedly higher than the corresponding scores of Latin American and African markets in the bottom

124、10,with the exception of South Africa,”says Kay Neufeld,director and head of forecasting at Cebr.Notably,most markets in these regions rank poorly in education and financial literacy indicators,suggesting that financial inclusion is held back by low literacy rates,both generally and in financial mat

125、ters.A driving factor of Argentinas position at the foot of the Index is its below average financial system support score(11.2)10 points below the next closest market in this pillar.This could be reflective of the state of the Argentinian economy in general;it has repatriated much of its financial s

126、ystem and dealt with high inflation and sovereign defaults over the years,all of which has crippled the economy and likely damaged business confidence in the financial system.The effects of economic downturns on business confidence in the financial system are apparent in our Index.Argentina records

127、low scores in the enabler of SME growth and success and enabler of general business confidence indicators.Additional markets in the bottom 10 noted poor scores in the financial system support pillar.This emphasizes the potential relationship between regulatory governance and the soundness of the fin

128、ancial system which was reflected positively in the Nordics(see key theme no.3).In Latin America and sub-Saharan Africa,the relatively low scores for government support for financial inclusion are correlated with the similarly low scores for financial system support.6 “Education,Economic Growth,and

129、Social Stability:Why the Three Are Inseparable”(PDF)2022 Global Financial Inclusion Index 1918 Principal insights by KAMAL BHATIAKAMAL BHATIAChief operating officer of Principal Asset ManagementFinancial inclusion as a powerful indicator of next generation capital and wealth markets across the globe

130、As global economies manage through growth and recession,understanding the role and impact of the three pillars underpinning financial inclusion offers valuable insights.It can help indicate the economic resilience of different markets,or offer clues into which markets may be set to experience more r

131、apid development into mature capital and wealth markets.The scores in the Global Financial Inclusion Index suggest there are three phases to the evolution of financial inclusion within a market,which correspond to its economic maturity and the way in which it engages with institutions and citizens.T

132、his evolution can only begin once the rule of law has been established and governments have helped develop the basic safety net programs to support citizens most fundamental needs.Its then we see businesses step in,serving as the primary source of financial guidance and support for employees.At this

133、 first stage,many governments essentially lack the resources and infrastructure to provide this comprehensively at a state level.The second phase begins when the business environment in the market matures and starts fueling a stronger economy,giving the government greater firepower and resources to

134、introduce measures which promote financial inclusion.These measures lay the foundation for the third phase where supportive employers and governments help drive progress and are complemented by a more developed financial ecosystem.This allows for more sustainable and equitable participation across s

135、ociety.The three phases ultimately create a virtuous circle.A well-evolved financial system becomes an enabler of business growth and confidence which,in turn,allows businesses to support their workforces more generously and meaningfullytriggering a new cycle.The financial inclusion scores of a numb

136、er of developing economies show this virtuous circle in action.Developing markets tend to rank lower within the Index compared to developed markets and,in general,are primarily reliant on the employer support pillar.However,the higher ranked developing markets have greater balance across the three p

137、illars in Index scoring.The benefits of this balance come to life in the United Arab Emirates(UAE),Thailand,and Malaysia,ranked 18th,19th,and 20th respectivelyall in the top half of the table.These markets rank well compared to other emerging economies for employer support.Although they slip down th

138、e rankings for government and financial system support,they still feature in,or only just outside,the top half of the table in each pillar.Compare this to other markets,such as Indonesia and Vietnam,which rank highly for employer support but far lower across the government and the financial system.L

139、ets consider how the three-phase cycle of financial inclusion has played out in Thailand,Malaysia,and the UAE,and how their scores across the three pillars could suggest that theyre set for rapid economic opportunity and greater output of wealth creation for its participants.Their Index results indi

140、cate a stage of development where economic growth,based on the right conditions at a government level,can be accelerated rapidly by the private financial sector.Thailand,Malaysia,and the UAE are all ranked in the top 10 as enablers of SME business growth and the UAE and Thailand rank in the top 10 f

141、or enablers of general business confidence(Malaysia ranks just outside at 11th).They also rank highly on access to creditthe UAE ranks sixth,Malaysia 16th,and Thailand 18th.These strong scores indicate that markets have reached a point in their development where businesses can borrow with confidence

142、 to invest for the future.Global financial partners entering the system can participate in exponential upside if they remain committed to enabling the cycle by helping strengthen the pillars in phase three.Elsewhere in this report we highlight how financially-inclusive economies tend to be more prod

143、uctive ones;this is simply one illustration of that relationship in action.This builds resilience into the macroeconomic cycles with internal support that is deeply attractive to financial institutions.To reach the stage where their financial systems become more financially inclusive and more effect

144、ive at promoting economic growth,Thailand,Malaysia,and the UAE have undergone significant reforms at a state level.The establishment of the National Pension Fund in Thailand has been in the works for more than a decade.Although it has not yet been formally launched,its development has prompted some

145、employers to attempt to get ahead of its introduction and created better awareness among employees about the importance of a long-term savings culture that encourages credit creation.In Malaysia,as a wealthy middle class grows,theres been a push to create a retail investment culture by reducing stat

146、e-owned stakes in government linked companies and promoting equity purchases across the population that encourages intelligent risk taking.The UAE has undergone a number of reforms in its pension system and its financial regulatory framework in recent years.Its a reflection of the regions social and

147、 economic ambition that it has a Ministry of Possibilities and a Minister for Happiness that help to build wealth.Of course,for the virtuous circle to continue,the employer,government,and financial system all need to keep evolving as their economyand,with it,their societydevelops.If a fracture emerg

148、es in one pillar,it will inevitably impact the others and risk breaking the cycle.The macroeconomic challenges facing economies globally will no doubt put some stress on these markets but,on a long-term view,we remain generally positive on their investment prospects.Within our global asset managemen

149、t business,we are largely bullish about the long-term growth prospects for Malaysia,reflected by our equity investments in local companies and significant human capital commitment in the country.We continue to accelerate our wealth management relationships across the UAE while actively participating

150、 in real estate strategies with marquee institutions in the region.This study is informing our renewed interest and increased capital commitment to Thailand,with a focus on the savings culture outside of the banking system.Better financial inclusion is not the only,or even the main,cause of better p

151、roductivity,just as greater productivity is not the main cause of greater financial inclusion.Both are contributors to and characteristics of a healthy economy.Markets which evolve through the financial inclusion cycleparticularly those that demonstrate strong scores in enabling business growth and

152、confidenceare well positioned to trigger a leap forward in their maturity as a capital market.We are going to be long-term partners and contributors to this journey.Financial inclusion is part of our mission.United Arab EmiratesOverall Index score51.23Rank18Government support score49.3721Financial s

153、ystem support score50.1521Employer support score64.5012ThailandOverall Index score50.04Rank19Government support score45.2623Financial system support score50.3520Employer support score70.166MalaysiaOverall Index score49.70Rank20Government support score44.9424Financial system support score49.6123Emplo

154、yer support score71.575Growth of business and economyFinancial sector becomes stonger enabler of business growth and confidenceConditions to build a more sophisticated financial systemFinancial system-supported financial inclusionEmployer-supported financial inclusionGovernment-supported financial i

155、nclusion2022 Global Financial Inclusion Index 2120 Examining employer support by sectorThe overall Global Financial Inclusion Index is accompanied by two sector rankings,tracking how employer support of financial inclusion shows up across different industries in surveyed markets.These sectors are:1)

156、services industries,and 2)production and construction industries,with the latter being combined to accommodate for sample sizes.The employer support pillar scores are derived from survey data based on polling businesses in each market(management-level employees).The services and production and const

157、ruction indices target a respondent base of 50 businesses per market,but due to the nature of each discrete economy,this was not possible in all cases.We included all economies with survey sample sizes of more than 20 businesses to allow for the least attrition and robust comparisons on a global sca

158、le.Markets with sample sizes of less than 30(*)businesses and between 30(inclusive)and 50 businesses(*)are flagged.Services sector indexThe services index tracks the state of employer support in the services sector across the 42 markets analyzed,using the same indicators as the employer support pill

159、ar in the overall Index:Provision of guidance and support around financial issues Employee pension contributions Employee insurance schemes Employer pay initiativesThe business types surveyed are:Retail tradeFinance and insuranceInformation managementEducationWholesale tradeManagement consultancyHea

160、lth servicesReal estateLeisure and hospitalityTransportationPersonal servicesAdministrative servicesRESULTS OVERVIEWThe services ranking is a subset of the employer support pillar.Its no surprise the trend of emerging or frontier markets scoring higher than developed markets is evident in the servic

161、es ranking,as it is in the overall employer support pillar.The U.S.is the only high-income developed economy to feature in the top 10 for the services sector,just behind Vietnam in second,while seven of the markets in the bottom 10 are developed economies.As in the overall Index,the U.S.services sec

162、tor scores well for the employer pension contributions indicator,ranking first among all 42 markets in the sample.Contributing to the markets high score is American service firms large pension/retirement contributions,which averages 9.7%of employee wages,second to only Chinese services firms(12.2%).

163、Close to two-thirds(63.2%)of U.S.service sector businesses contributions are above government-mandated levels,easily the highest share across all other markets service sectors.Firms operating in the services sector in Asian markets tend to outperform their counterparts in the rest of the worldprovid

164、ing more support to aid in employees financial inclusion.Nine out of the top 10 markets are in Asia,and all the Asian markets included in our sample rank in the top 20,with the exception of Singapore,Israel,Japan,and South Korea.This result is especially pertinent given the fact that the four listed

165、 markets above are well-established economies,while the rest of the high-ranking Asian markets are emerging economies.South Korea and Japan rank last in the services index,highlighting the divide between these markets and their Asian counterparts.Asian services-focused companies offer a high degree

166、of support to their workforces regarding common financial practices.Excluding Hong Kong and Turkey,all Asian markets in the top 20 score well in the provision of guidance and support around financial issues indicator,with scores of at least 80.The level of guidance offered to employees on financial

167、matters appears to be broadly correlated with the generosity of company insurance schemes.The same set of Asian markets,except for the notable outliers of Vietnam(88.5)and China(53.1),achieve scores in the range of 65 to 80 for the employee insurance schemes indicator.Table 3:Global Financial Inclus

168、ion Index employer support pillarservices sectorRankMarketScoreProvision of guidance and support around financial issuesEmployee pension/retirement contributionsEmployee insurance schemesEmployer pay initiatives1.Vietnam83.288.270.588.598.52.United States80.085.186.267.575.13.India78.593.377.169.175

169、.94.Saudi Arabia73.993.462.571.679.85.Malaysia73.390.562.071.281.06.Thailand72.590.456.679.979.27.Hong Kong69.472.261.675.576.08.China69.182.780.653.148.59.United Arab Emirates66.685.554.772.065.910.Turkey65.272.860.469.563.111.Indonesia62.781.746.266.673.012.Taiwan62.777.747.273.367.913.Norway*62.3

170、76.165.655.948.114.Finland60.374.155.662.753.515.Switzerland58.663.957.364.949.816.Poland58.571.341.372.066.717.Peru57.463.561.642.557.618.Denmark56.583.539.163.257.419.Nigeria56.478.145.148.565.020.Brazil55.666.148.958.056.121.Singapore55.556.964.647.743.622.Sweden51.862.649.556.940.523.Chile*49.94

171、8.852.752.742.424.Israel49.757.839.653.158.525.Italy47.761.540.448.048.426.Netherlands47.054.444.450.740.827.Colombia42.042.828.840.869.128.Argentina41.927.844.750.641.829.Mexico41.342.532.943.554.730.France40.944.236.348.139.731.Kenya40.863.620.833.065.932.Germany39.735.745.833.037.933.Canada37.57.

172、342.348.347.634.Spain37.136.628.551.939.735.Ghana*37.036.434.430.449.636.Australia35.221.154.228.118.637.South Africa34.546.017.045.646.738.Ireland25.923.531.826.416.239.New Zealand24.724.830.816.320.840.United Kingdom22.80.046.24.617.141.South Korea18.62.924.827.113.442.Japan18.610.121.020.420.3*30

173、 n 50,where n is sample size,*20 n 30,where n is sample size2022 Global Financial Inclusion Index 2322 Production and construction sectorThe production and construction rankings track the state of employer support in the production and construction sectors across all listed economies,7 using the sam

174、e indicators as the employer support pillar in the overall Index:Provision of guidance and support around financial issues Employee pension contributions Employee insurance schemes Employer pay initiativesAs noted,the two sectors were combined to account for smaller sample sizes.The business types s

175、urveyed which are classed as production and construction are:ManufacturingAgricultureUtilitiesMining and forestryScientific/technical servicesConstructionRESULTS OVERVIEWSimilar to the services index,Asian markets score well for employer support in the production and construction sector.With the exc

176、eption of Japan and South Korea,all other Asian markets with sufficiently large sample sizes ranked in the top 20.As with the services index,Vietnam leads the table.Singapore,the top-ranked market in our overall Index,places fourth in the production and construction rankinga stark contrast to its 21

177、st place in the services ranking.Once again,Asian markets in the top 20 performed comparatively better in the provision of guidance and support around financial issues indicator,with scores in the range of 65 to 100,compared to the other economies outside of Asia in the top 20,where the correspondin

178、g range stands at 30 to 81.7 For this Index in particular,five markets that featured in the overall Index are absent(Chile,Norway,Hong Kong,Taiwan,and Ghana),indicating that that the sample sizes for the respective markets were less than 20.There are also 17 markets with sample sizes between 20 and

179、50,and these have been flagged accordingly.Table 4:Global Financial Inclusion Index employer support pillarproduction and construction sectorRankMarketScoreProvision of guidance and support around financial issuesEmployee pension/retirement contributionsEmployee insurance schemesEmployer pay initiat

180、ives1.Vietnam87.893.884.582.294.22.India*83.598.082.377.777.33.United States79.280.178.884.074.34.Singapore68.667.679.963.851.65.Malaysia*68.468.664.178.366.86.Finland*67.478.864.478.251.47.China67.382.477.952.845.88.Peru*67.174.568.757.366.39.Turkey65.575.863.868.855.110.Thailand63.787.445.578.761.

181、611.Israel*63.377.652.468.965.112.Saudi Arabia*63.084.756.249.768.113.Nigeria*61.476.656.456.361.014.Indonesia*61.286.845.763.164.715.Australia60.252.864.259.660.216.Denmark*60.077.756.652.856.417.Poland57.163.144.568.365.418.Switzerland*56.430.275.961.338.719.United Arab Emirates*56.066.448.356.260

182、.720.Mexico54.654.057.348.156.521.Argentina52.843.049.263.559.022.Brazil*52.755.745.351.066.523.Netherlands*49.067.643.350.839.624.Sweden*48.145.044.664.741.725.Germany*42.748.549.333.633.026.France42.032.347.234.748.827.South Africa42.039.437.141.355.228.Spain41.635.743.541.743.529.Colombia41.440.8

183、30.437.168.130.Kenya40.462.920.436.561.931.Italy*37.234.537.133.144.232.Ireland*29.925.841.529.311.433.Canada29.921.526.951.522.634.United Kingdom27.716.944.115.717.835.South Korea26.714.539.422.317.936.Japan18.77.719.326.620.737.New Zealand13.84.726.17.54.6*30 n 50,where n is sample size,*20 n 30,w

184、here n is sample size2022 Global Financial Inclusion Index 2524 Employer support within global industriesAs mentioned above,on a per market basis,low sample sizes of businesses mean that employers have been segmented into services or production and construction sectors.However,sample sizes globally

185、are large enough to allow for a more granular industry breakdown across a range of sectors.The industry-by-industry ranking tracks the state of employer support across each industry globally,using the same indicators as the employer support pillar in the overall Index:Provision of guidance and suppo

186、rt around financial issues Employee pension contributions Employee insurance schemes Employer pay initiativesRESULTS OVERVIEWIts hard to draw definitive conclusions around how well or poorly employers support financial inclusion on a global sector basis,as such initiatives and systems will differ si

187、gnificantly between markets.However,the analysis does reveal some notable trends.Professional sectors with typically higher wages(finance and insurance,information management,management consultancy,administrative services,and real estate),reported providing employees with greater support and tools t

188、o enable financial inclusion compared with industries that tend to be lower wage and more likely to employ informal workers(education,agriculture,retail,leisure and hospitality,and personal services such as hairdressing,beauty,etc.).Globally,more businesses perform better for their employee pension/

189、retirement contributions compared to employee insurance scheme provisions,provision of guidance and support around financial issues,and employer pay initiatives.However,some of the lowest scores in the global sector analysis are the employee pension contributions and employee insurance schemes indic

190、ators.For example,the personal services industry scores 16.32 on pension contributions and 11.5 on insurance provisions,and the leisure and hospitality industry scores 21.21 and 12.61 on the same metrics respectively.This suggests that while pay initiatives clearly have a significant impact on finan

191、cial inclusion,within certain sectors there is a notable lack of benefits and financial protection offered to employees,particularly within sectors that employ a high number of part-time staff.Table 5:Global Financial Inclusion Index employer support pillarglobal sectorRankSectorScoreProvision of gu

192、idance and support around financial issuesEmployee pension/retirement contributionsEmployee insurance schemesEmployer pay initiatives1.Finance and insurance94.3998.1696.4594.7686.112.Information management92.6686.9696.5788.3394.853.Management consultancy69.6076.9968.9573.8559.234.Administrative serv

193、ices69.2571.8164.4775.0870.445.Real estate63.8859.0865.2060.6069.316.Manufacturing62.8251.5466.2865.9064.127.Mining and forestry53.6379.4850.2353.0535.168.Utilities51.4460.6152.6851.1740.079.Wholesale trade48.1241.9355.7246.1941.0410.Health services46.4843.4755.8846.3730.8111.Transportation44.0341.9

194、853.3246.2325.3012.Construction42.4135.8939.9050.4645.9013.Scientific/technical services 40.8218.4353.1649.7329.6314.Education36.2841.3547.7226.3518.2615.Agriculture30.4643.0623.7023.6938.1816.Retail trade21.304.9625.3717.4733.3617.Leisure and hospitality19.099.3821.2112.6131.0618.Personal services1

195、8.5920.2116.3211.5028.602022 Global Financial Inclusion Index 2726 Principal insights by AMY FRIEDRICHAMY FRIEDRICHPresident of U.S.Insurance Solutions at Principal Financial GroupBridging the financial inclusion gap among U.S.employers:Opportunities and challenges to fostering greater financial inc

196、lusion in small businessesAccording to the Global Financial Inclusion Index,the United States boasts a high level of financial inclusion support from employers for their employees.Its in many ways an outlier,especially among other developed markets in the Index,scoring well across all aspects of fin

197、ancial inclusion measured.However,this headline coming out of the employer support pillar research masks a key challenge facing financial inclusion in the U.S.specifically that,the smaller the business,the less support available to employees.Putting the challenge into perspective This is no small is

198、sue,especially since small businesses employ such a significant proportion of U.S.workers.According to the U.S.Small Business Administrations(SBA)latest count,in December 2021,there were 32.5 million small businesses(about 6 million with one or more employees)in the U.S.compared to just 20,516 large

199、 businesses.8 These businesses comprise 99.7%of firms with paid employees and create millions of new jobs.From 1995 to 2020,small businesses created 12.7 million net new jobs while large businesses created 7.9 million.9 Considering the number of people employed by small businesses in the U.S.,the ch

200、allenges this group faces in providing financially inclusive support systems to their staff start to look more complex.The largest U.S.employers score far higher for providing guidance around financial issues,employee pension contributions,insurance coverage,and pay flexibility.Scores fall markedly

201、as businesses get smaller.The reasons for the drop off are varied.Some of the most challenging examples include a combination of a lack of resources(whether financial or personnel-related)and a tendency to overestimate the cost to provide employee benefits.Theres also more work needed to help small

202、businesses better understand support available at a government level and empower them to make use of these initiativesfor example around tax breaks and wider employer incentives.These issues demand more creative solutionsand holistic financial system and government support.These complex issues are w

203、ithout a doubt frustrating to small business owners,many of whom are understandably more focused on the day-to-day running of their business rather than employee benefits packages.Small business owners need a starting point.There are three opportunities that stand out.8 The U.S.Small Business Admini

204、stration classifies small employers as those employing between one and 500 employees.https:/cdn.advocacy.sba.gov/wp-content/uploads/2022/08/30121338/Small-Business-Economic-Profile-US.pdf 9 https:/cdn.advocacy.sba.gov/wp-content/uploads/2021/12/06095731/Small-Business-FAQ-Revised-December-2021.pdf1E

205、mployees trust in their employer can play an important role.According to the 2022 Edelman Trust Barometer,business,generally,is the most trusted global institution,ahead of non-governmental organizations(NGOs),government,and media.10 On top of that,77%of global respondents trust their employer.The t

206、rust in the employer-employee relationship is incredibly strong and is a driving force behind greater financial inclusion.This suggests that if employers were to proactively encourage their employees to take advantage of the benefits resources available,many would be likely to do so.2Small businesse

207、s need more information and education.Theres an untapped opportunity to better equip small businesses with the right information to support employees in their financial security.In small enterprises,often management teams are acting as employers for the first time.When beginning in this new human re

208、sources(HR)role,their first focus is payroll and then usually health insurance.As they consider additional benefits,they often significantly overestimate the cost per employee and may shy away from providing more benefits as a result.11 Perceptions around cost,coupled with the daunting task of narro

209、wing which benefits to offer and a provider to work with,can deter many of these businesses from pursuing more comprehensive support.Theres a huge education gap that must be filled within the small business community in order for smaller employers in the U.S.to become greater enablers of financial i

210、nclusion.Better professional training and support is a key solution to the problem,but theres also a need for the financial services industry to simplify the process for employers.Simple,intuitive,and easy-to-understand solutions can help small businesses prioritize employee benefits and build a com

211、prehensive foundational package,which combines income protection,insurance coverage,and retirement savings options.3Public-private partnership is key.The public sector has a significant role to play in creating and promoting solutions which help employers bridge these gaps in the U.S.At the federal,

212、state,or local levels,initiatives such as the SECURE Act,the American Rescue Plan,the Paycheck Protection Program,small business tax credit programs,the Restaurant Revitalization Fund,and SBA debt relief,along with an additional 60 plus grants,loans,and programs,offer a variety of options for the un

213、ique needs of business owners.12However,small businesses are often not fully aware of the help available and how to access it.As a result,many smaller businesses do not fully maximize the support thats available and are not able to deliver the best possible benefit packages to their workforce.This i

214、s where the financial system,particularly financial services providers,can play an important role in amplifying the good work of the government to drive awareness for these programs and help facilitate uptake.Its only through the combined efforts of the financial system,government,and employers that

215、 employees can get the education,solutions,and services they need to build long-term financial security.The public and private sectors must work in tandem to improve the state of financial inclusion within U.S.small businesses.Its only through the combined efforts of the financial system,government,

216、and employers that employees can get the education,solutions,and services they need to build long-term financial security.”10 https:/ https:/ https:/ Global Financial Inclusion Index 2928 This graphic only represents eight of the 17 UN SDGs.Financial inclusion for economies and their populationsWhat

217、 does better financial inclusion mean for economies and their populations?Financial inclusion is positioned prominently by the United Nations(UN)as an enabler of other developmental targets within the 2030 Sustainable Development Goals(SDGs),where it is featured as a component of eight of the 17 goa

218、ls:13 SDG1 on eradicating poverty SDG 2 on ending hunger,achieving food security,and promoting sustainable agriculture SDG 3 on profiting health and well-being SDG 5 on achieving gender equality and economic empowerment of women SDG 8 on promoting economic growth and jobs SDG 9 on supporting industr

219、y,innovation,and infrastructure SDG 10 on reducing inequality SDG 17 focuses on strengthening the means of implementation,suggesting theres an implicit role for greater financial inclusion through greater savings mobilization for investment and consumption,which can spur growth.As such,we considered

220、 the correlation between the Global Financial Inclusion Index and several other indices which demonstrate how advanced different markets are in relation to various economic and social objectives.For example,theres an opportunity to analyzeand to measure over timethe relationship between financial in

221、clusion and productivity.Do financially inclusive economies typically have a higher output?Similarly,are financially inclusive economies more resilient to market downturns?Are they home to happier populations?And is there a link between better financial inclusion and a markets ability to adapt to,an

222、d mitigate the effects of,climate change?The analysis does not seek to imply any causal link between higher financial inclusion and the ability of economies to meet wider socioeconomic challenges.However,the fact that the UN acknowledges the connection between them suggests that improving financial

223、inclusion can accelerate progress toward meeting the SDGs and combatting global challenges around hunger,climate resiliency,economic resilience,productivity,and overall health and well-being.This report therefore analyzes the relationship between the Global Financial Inclusion Index and other indice

224、s that best reflect the aims of these SDGs.13 https:/sdgs.un.org/goalsRESULTS OVERVIEWThe correlations between the Global Financial Inclusion Index rankings and the rankings of the same markets in the other indices listed in Table 6 are strongly positive and significant.Rankings are compared using S

225、pearmans rank correlation coefficient and scored between 1 and 1 where 1 is a perfect positive correlation.All correlations show a strong,positive relationship between financial inclusion and other factors which shape a resilient and thriving society.Correlation does not imply causation and its like

226、ly that the relationship between financial inclusion and other indices is driven in large part by other factors these economies have in common.For example,developed economies tend to rank highly across all of the indices to which we compared our own results.More developed markets are more likely to

227、have the structures in place to promote financial inclusion and have larger budgets(public and private)to spend on requirements around food security,health care,climate change,etc.One way of reading these correlations is as a reflection of a markets stage of development.The strongest relationship is

228、 between financial inclusion and climate change adaptation which has a correlation coefficient of 0.81.The high correlation may be explained by the fact that more advanced economies are further along the path in addressing the climate crisisand have the financial means to do sojust as they are furth

229、er along the path to addressing financial inclusion.By contrast,extensive existing research suggests that emerging economies need trillions of dollars of investment to allow them to meet net-zero targets while continuing to grow and prosper.14 India,China,and Indonesia,for example,all rank far highe

230、r for financial inclusion than they do for climate change adaptation.The U.S.also exhibits a large gap,ranking second for financial inclusion but 16th for climate change resilience.The correlation between financial inclusivity and economic resilience is also strongly positive at 0.78.Research from t

231、he World Bank demonstrates not only that“access to financial services is essential for resilience and economic recovery”but also that economic shocks,such as COVID-19,disproportionately impact lower income households,small businesses,and individuals in predominantly emerging markets without,for exam

232、ple,easy access to credit,digital payments,and microfinance.15 The top five largest market gaps where the Index rankings are higher than the economic resilience rankings are all in emerging economies(China,Hong Kong,Thailand,India,and Vietnam).Equally,four out of the top five markets which rank bett

233、er on economic resilience than financial inclusion are European(Germany,France,Italy,and Spain).When comparing the rankings for financial inclusion and happiness,the correlation stands at 0.68,which although lower than the other relationships we explored,is still a strongly positive relationship.The

234、 markets with the largest ranking gaps are Hong Kong and Singapore which rank fourth and first for financial inclusion but 35th and 19th respectively for happiness.By contrast,Italy,Saudi Arabia,and Argentina rank significantly higher for happiness than financial inclusion.Table 6:Global Financial I

235、nclusion Index correlations to comparative indices and economic metrics16ThemeIndexCorrelationClimate change adaptationThe ND-Gain Market Index0.81Economic resilienceThe FM Global Resilience Index0.78Human developmentThe Human Development Index0.77ProductivityILOSTAT statistics on labor productivity

236、0.74Food securityGlobal Food Security Index0.72HappinessWorld Happiness Report 20220.6814 https:/www.weforum.org/agenda/2022/04/emerging-developed-economies-net-zero-transition/15 https:/openknowledge.worldbank.org/bitstream/handle/10986/36883/9781464817304_Spot1.1.pdf16 For further details on compa

237、rative indices,please see Appendix B.2022 Global Financial Inclusion Index 3130 Principal insights by SEEMA SHAHSEEMA SHAHChief global strategist of Principal Asset ManagementAnalyzing risks to resilience and growth through the lens of financial inclusionUnderstanding and encouraging financial inclu

238、sion is a major consideration not only for policymakers worldwide,but also for investors.Financial inclusion can boost productive investment and consumption,enabling economies to better manage risks and sustain future financial shocks.Observing the financial inclusion scores of different markets,we

239、believe there are four distinct categories into which the 42 markets analyzed can be segmented.These categorizations provide an indication of some of the short-,medium-,and long-term risks to which economies are exposed.1Mature,forward-looking economiesThe first category comprises markets which are

240、both older,wealthy economies and exhibit actions related to financial inclusionand other societal factors more broadlywhich support long-term economic growth and resilience through business cycle peaks and troughs.Smaller Northern European economies are good examples.The four Nordic markets analyzed

241、Sweden,Finland,Denmark,and Norwayall rank in the top 10 for overall financial inclusion.This is largely driven by strong performances in government support,with all four ranking in the top six under this pillar.Sweden,Finland,and Denmark also rank in the top 10 in the financial system pillar,with No

242、rway placing 12th.Although the Nordics demonstrate the same inverse relationship as other markets(whereby higher scores in the government and financial system pillars are usually paired with lower scores in the employer pillar),their rankings for employer support are notably higher than the other la

243、rger European economies,such as the United Kingdom,France,and Germany.These Northern European economies have constructed stable government systems,while their tried-and-tested financial infrastructure has evolved and strengthened through multiple economic cycles.This economic maturity is married wit

244、h consideration ofand investment intoproductivity requirements for the next 50 to 100 years.These markets have been built on well-developed banking systems,which facilitate easy access to bank accounts and credit,by ensuring the financial infrastructure is tech-enabled and fit for purpose in a moder

245、n,digitized economy.These markets are considered some of the most technologically advanced nations in the world.Their scores for volume of real time transactions and presence,and quality of fintechs are generally strong and compare favorably with other major European markets.The support offered at a

246、 state,employer,and financial system level in the Nordics is reflected in other aspects of their society.All four economies rank in the top 10 in the 2022 World Happiness Report and in the top 20 against indices tracking productivity.Equally,indices which measure an economys vulnerability to disrupt

247、ive events and its ability to recover swiftly place three out of four of these markets in the top 10,with Finland just outside at 12th.These markets occupy four out of the top five spots in the Notre Dame GAIN Index,which summarizes an economys vulnerability to climate change and other global challe

248、nges in combination with its readiness to improve resilience.Comparative indices rankings17MarketGlobal financial inclusionFood securityHappiness ProducitivityEconomic resilienceClimate change adaptationHuman developmentSweden31220812419Finland531158210Denmark61526169Norway9Mature,forward

249、-looking economies combine solid support across all three pillars of financial inclusion with strong performances in areas which are long-term risk factors,such as tech adoption,susceptibility to the effects of climate change,and the ability to maximize the potential of the workforce.By investing in

250、 these pillars,these markets are well equipped to not only withstand the challenges of the various megatrends facing society over the coming decades but to thrive in spite of them.SwedenOverall Index score65.44Rank3Government support score65.295Financial system support score68.914Employer support sc

251、ore50.5223FinlandOverall Index score64.66Rank5Government support score66.912Financial system support score62.429Employer support score64.6211DenmarkOverall Index score63.87Rank6Government support score65.016Financial system support score64.319Employer support score56.7719NorwayOverall Index score63.

252、08Rank9Government support score66.194Financial system support score59.4412Employer support score65.49102Mature,backward-looking economies By contrast,the Global Financial inclusion Index suggests that Europes largest,oldest economies have not sufficiently invested in businesses and technology to fut

253、ureproof financial inclusion for their own populations.The U.K.,Germany,Italy,France,and Spain receive underwhelming scores across the three pillars of financial inclusion.None of these economies feature in the top 10 overall;the U.K.ranks 13th,Germany 15th,France 23rd,Spain 29th,and Italy is a part

254、icular outlier at 37th.Europes larger,older economies are wealthy nations which means that some of the cracks in the system and their failings in relation to financial inclusion are partially papered over.However,we believe that the actions of their governments,financial systems,and employers offer

255、insights into significant long-term risks facing their economies.Mediocre scores in the government and financial system support pillars are combined with universally low scores in the employer support pillar.This suggests that Europes older economies are becoming overly reliant on their government a

256、nd financial support structures.17 Rankings for these Indices have been rebased to include only the 42 markets in the Global Financial Inclusion Index.For further details on the comparative indices,please see Appendix B.2022 Global Financial Inclusion Index 3332 Four of the five markets land in the

257、top half of the rankings for the state of public pensions,excluding Italy.However,when considering employee pension contributions,they drop much lower in the rankings with Germany ranking the highest at 17th out of 42.This reliance on public pensions versus individual contributions means as the agin

258、g population grows,so does the burden on the state.Over time,this becomes less sustainable without increased contributions from employers and workers.As populations age,the burden on the state increases and relying on government-provided pensions becomes less sustainable without increased contributi

259、ons from employers and employees.Not only does the data indicate that employer-sponsored pension systems are behind the curve in Europes major markets,but it also suggests that education and understanding around long-term savings is low.Scores for awareness and uptake of government-mandated pensions

260、 and savings are,with the exception of Italy,fairly weak,and all five markets rank in the bottom half of the table for availability of government-provided financial education.Government support pillarEmployer support pillarMarketState of public pensions rankAwareness and uptake of government-mandate

261、d pensions rankAvailability of government-provided financial education rankEmployee pension/retirement contributions rankProvision of guidance and support around financial issues rankFrance1819382731Germany1330391735Italy319273229Spain2137363532United Kingdom818412139By failing to engage their aging

262、 populations around the threats of inadequate retirement incomeneither at an employer nor government levelmany of the continents largest markets could be facing a potential pension crisis.The relatively generous level of state pension provision and comparatively high degree of household wealth means

263、 that this issue does not result directly in economic pressure today,but unfortunately may encourage complacency and poses a serious long-term risk to economic health and resilience over the next several decades.Within France,Germany,Italy,and Spain in particular,this has the potential to create fin

264、ancial strains within the European Union and could become a source of regional destabilization.To combat this headwind,adapting current systems to align with the Nordic pension model or even a hybrid model with some aspects borrowed from the Nordics or the United States,could improve retirement outc

265、omes and drive greater financial inclusion.Conversely,a long-term risk factor Europe does appear better positioned to manage than many other global markets is its exposure to the threats of climate change.Like pensions,environmental risks are much longer term in nature.Europes largest five economies

266、 all rank in the top quartile for their capacity to improve resilience to climate change,as measured by the Notre Dame GAIN Index.18The long-term investment prospects for the mature,backward-looking economies are clouded by riskin particular,risk linked to failing to modernize a long-term savings cu

267、lture that keeps pace with aging demographics.While these economies attract significant global investment today due to their maturity,wealth,and ample capital markets,its important they invest more in the financial futures of their populations to remain attractive for the long-term.United KingdomOve

268、rall Index score56.92Rank13Government support score59.349Financial system support score61.8410Employer support score23.9439GermanyOverall Index score56.20Rank15Government support score56.2715Financial system support score58.9413Employer support score43.5427FranceOverall Index score45.47Rank23Governm

269、ent support score47.4722Financial system support score43.9327Employer support score43.3528SpainOverall Index score42.28Rank29Government support score42.6628Financial system support score42.5929Employer support score39.1534ItalyOverall Index score32.81Rank37Government support score34.7232Financial sy

270、stem support score28.7038Employer support score42.722918 https:/gain.nd.edu/our-work/country-index/3Young,forward-looking economiesWhile the highest ranked markets for financial inclusion overall include many Northern European nations,the data shows that several newer economies,particularly in Asia,

271、Southeast Asia,and the Middle East,are investing in initiatives now which could make a significant difference to financial inclusion,as well as growth and economic resilience,in the future.Notably,Singapore ranks first overall,and Hong Kong ranks fourth,but an analysis of the underlying data reveals

272、 further trends of note.Comparatively young economies,such as Singapore,Hong Kong,the United Arab Emirates,Thailand,Malaysia,and Saudi Arabia score,on average,quite favorably on indicators such as employer guidance,pensions and insurance,financial technology and digital infrastructure,consumer prote

273、ction,and government sponsored financial education.Notably,some of the“young”markets which rank highly on the above indicators also rank in the bottom 10 for financial literacy levels and for overall education levels.With the exceptions of Singapore and Hong Kong,these markets rank in the bottom hal

274、f of the table for both indicators.In other words,in young economies where financial literacy is relatively low,but where the middle class is growing,governments,financial systems,and employers are working effectively in collaboration,investing in forward-looking initiatives which will help their po

275、pulations manage their increasing wealth and ensure that this is distributed back into the economy to stimulate growth.Newer economies have dynamic governments and private sectors;they are often purpose-built and have taken the most financially inclusive aspects of other markets to shape their socie

276、ty.The wealthier among them(such as Singapore and Hong Kong)can cherry-pick the infrastructure,regulation,and the structure of their financial systems around the growing wealth of their populations,with a view to creating the leading global economies of the next 100 years.Technology and online conne

277、ctivity are key components of success,enabling these markets and their citizens to benefit economically from globalization.What took hundreds of years to achieve in older markets,newer economies are managing in fractions of the time.Hong Kong,the UAE,Thailand,and Singapore all rank in the top 10 for

278、 online connectivity,and Singapore and Thailand appear in the top 10 for real time payments.Singapore ranks fourth and Hong Kong 13th for the presence and quality of fintechs indicator.Digital finance is equipping people to smooth their consumption,allowing them to save for rainy days and invest in

279、their businesses,pushing income potentials higher.New,forward-looking economies,which are investing in financial inclusion now,have huge long-term growth potential.However,in the near-term,when faced with the prospect of a global downturn,they are potentially more exposed to volatility given their f

280、inancial systems have not been stress-tested through multiple economic cycles in the same way as more mature markets.SingaporeOverall Index score68.85Rank1Government support score69.451Financial system support score70.173Employer support score60.2314Hong KongOverall Index score65.13Rank4Government s

281、upport score62.108Financial system support score67.126Employer support score69.858United Arab EmiratesOverall Index score51.23Rank18Government support score49.3721Financial system support score50.1521Employer support score64.5012ThailandOverall Index score50.04Rank19Government support score45.2623Fi

282、nancial system support score50.3520Employer support score70.166MalaysiaOverall Index score49.70Rank20Government support score44.9424Financial system support score49.6123Employer support score71.575Saudi ArabiaOverall Index score38.51Rank32Government support score37.8830Financial system support score

283、31.0936Employer support score74.7142022 Global Financial Inclusion Index 3534 4Reliant economiesThe fourth category comprises markets which,to date,have lacked the resources to invest in the financial and social systemsincluding those promoting financial inclusionwhich contribute to economic resilie

284、nce and growth.The economies which score poorly for financial inclusion are predominantly developing markets situated in Latin America and sub-Saharan Africa.In these regions,scores for education levels and financial literacy are very low,as are the scores for online connectivity and key factors rel

285、ating to the financial system,such as access to bank accounts and credit.In short,economic weakness has resulted in a limited ability to invest in the foundations for stability and growth.The majority of the markets toward the foot of the rankings for financial inclusion are heavily reliant on overs

286、eas aid and support from the International Monetary Fund.Newer,forward-looking economies in Asia and the Middle East are illustrations that at the point in time when investments in financial and social systems become possible,economic development can be rapid.In a digitized global economy,relatively

287、 modest investments in businesses,technology,and financial infrastructure can have very significant and quick impacts,meaning J-curve growth versus the slow incline of the more mature markets.But many of the markets in Latin America and Africa do not currently have the public or private sector capit

288、al to achieve this on their own.The decision by richer nations to provide financial support for poorer regions to invest in the building blocks of a more resilient economy is not only a moral choice but enlightened self-interest.Globalization,complex supply chains,and mobile populations mean that a

289、failure to significantly improve financial conditions in struggling economies can have dramatic effects in developed markets.For example,while several studies have argued the longer-term benefits of introducing younger,migrant workers to a market,the influx of refugees into Germany following the Syr

290、ian war had a destabilizing short-term impact.19 By supporting and investing in financial inclusion in markets facing severe social and economic challenges,richer nations can reduce poverty and spur greater economic growth,thereby reducing struggling nations migration needs.In a globalized economy,l

291、ong-term growthand many of the financial and social factors which underpin it,such as financial inclusionis not achieved on a purely national basis.Major threats in one market have the potential to pose significant risks to others.For the foreseeable future,any economy is only as strong as its neigh

292、bors.19 https:/www.aicgs.org/publication/burden-or-blessing-the-impact-of-refugees-on-germanys-labor-market/Worlds largest economies among outliersThere are a number of large economies that stand apart from these four categorizations.The financial inclusion scores of the U.S.,China,and India do not

293、comfortably fit into a box of mature or new,forward or backward-looking economies.The U.S.,for example,achieves scores comparable to a mature,backward-looking economy in terms of its government infrastructure but performs more like a young,forward-looking economy in terms of its tech adoption and pr

294、o-business philosophy.Its overall score is pulled down by its rankings for the complexity of corporate tax system and state of public pensionsbroadly in keeping with the performance of continental Europe.By contrast,the U.S.shares high rankings with new,forward-looking economies on indicators promot

295、ing business growth,technology,and employer support.The volume of real time payments indicator is weighted for population so even the United States comparatively low rank of 25th should be read in the context of the large untapped market opportunity once a greater share of the population is using on

296、line banking.The U.S.has embraced digital innovation and online connectivityand invested accordingly in the sector as a growth areawhilst empowering and incentivizing employers to create a stronger,more resilient economy.China also defies categorization.It performs strongly against metrics which ind

297、icate that it should be well positioned to grow,including ranking in the top three for its financial system enabling business confidence,and just outside the top 10 for the presence and quality of fintechs.However,across its vast population,financial literacy and access to credit are low,creating ba

298、rriers to productivity.India ranks in the top 10 across all indicators under the employer support pillar,ranking first for provision of guidance and support around financial issues.It also scores highly on consumer championing regulation and availability of government-provided financial education.Ho

299、wever,it places in the bottom two for online connectivity and financial literacy.As evidenced by the new,forward-looking economies,small investments into financial and social systems in India could have rapid impacts on both financial inclusion and broader economic development,which would position t

300、he economy well for future resilience and growth.For further detail on the rankings of particular indicators by market,please refer to Appendix C:Markets ranked by indicator.2022 Global Financial Inclusion Index 37Populations perceptions of financial inclusionAs previously discussed,the Global Finan

301、cial Inclusion Index models financial inclusion based,predominantly,on quantitative secondary data sources.However,to provide a complete and holistic picture of global financial inclusion,its important to also consider the view of individuals across the 42 markets and analyze the extent to which the

302、se populations recognize and understand how governments,financial systems,and their employers support their financial well-being.The Index has therefore been supplemented with a comprehensive consumer survey of 500 people from each of the 42 markets to determine how people rate the access they have

303、to financial support,products,tools,and services,and how this stacks up to programs,provisions,and performance of these institutions as measured by the Index.Table 7 provides a ranking of financial inclusion by market according to the results of this survey.The overall rank is based on individuals r

304、esponses to the question:To what extent do you feel financially included in your market?The government,financial system,and employer support columns are based on individuals responses to the question:To what extent do you feel the following groups act in a way which is helpful for you to feel financ

305、ially included?Across all columns,the table shows the percentage of those who feel financially included.36 RESULTS OVERVIEWHalf of the top 10 ranked markets by populations perceptions are in Asia,specifically China,Vietnam,India,Singapore,and Hong Kong.In stark contrast to the Index,only two Europea

306、n markets,Switzerland and Finland,feature in the top 10 overall survey rankings.China,India,and Saudi Arabia rank in the top five markets overall and across each of the three pillars.China ranks first in every pillar under the consumer survey.As in the Index,large European economies pool towards the

307、 lower quartiles of the ranking when it comes to how individuals feel about financial inclusion.Only France sits in the upper half of the table with a rank of 14th.Germany is 21st,the United Kingdom is 24th along with Norway,Italy ranks 31st,Spain ranks 33rd,and Ireland is the lowest ranked European

308、 economy at 36th,flanked by Brazil and Peru.The bottom 10 ranked markets by consumer sentiment are dominated by Latin America,which is also reflective of the Indexs data.Three out of five of the top ranked markets by government support(China,Saudi Arabia,and Vietnam)are described by the Economist In

309、telligence Unit as“authoritarian regimes.”20 These nations also have a high number of state-owned enterprises.Seven out of the top 10 ranked markets by consumers for government support are Asian or Southeast Asian(China,Vietnam,India,Singapore,Malaysia,Hong Kong,and Taiwan)and only two are European(

310、U.K.and Denmark).Saudi Arabia ranks sixth on this metric.Half of the markets ranked in the bottom 10 for government support are in Latin America(Peru,Chile,Argentina,Brazil,and Colombia)and four out of bottom 10 are European economies(Turkey,Italy,Spain,and Ireland).European economies rank poorly in

311、 relation to the perceived supportiveness of their financial systems in promoting financial inclusion.Seven out of the bottom 10 economies ranked under this pillar are European markets(Turkey,Norway,Italy,Spain,Ireland,Germany,and Sweden).No European market features in the top 10 rankings by consume

312、rs for financial system support.The top 10 markets ranked by populations for financial system support all fall within Asia,Southeast Asia,and Africa.When it comes to how populations perceive their employers actions toward financial inclusion,the United States is the only Western market to feature in

313、 the top 10.Notably,certain market rankings are significantly dragged down by their perceived performance in employer financial inclusion.Hong Kong,for example,ranks 40th for employer support,compared to eighth for financial system and ninth for government support.Similarly,Taiwan ranks 41st for emp

314、loyer support but sixth for financial system and 10th for government support,according to the consumer survey results.20 Economist Intelligence Unit:Democracy Index 2021Table 7:Population survey rankings of financial inclusion by market21RankMarketScoreGovernment support percentage and rankFinancial

315、 system supportpercentage and rankEmployer supportpercentage and rank1.China97.24%96.65%195.46%192.49%12.Vietnam95.12%89.06%391.41%287.77%73.India92.20%88.40%488.00%390.59%24.Saudi Arabia91.63%90.44%287.65%489.83%35.Hong Kong88.42%74.45%981.64%866.12%406.Singapore87.35%80.83%681.42%978.75%187.Switze

316、rland85.63%69.06%1465.07%2678.33%208.United Arab Emirates85.46%84.66%583.07%783.09%109.Finland85.12%66.67%1567.66%2480.87%1310.United States84.75%71.68%1277.03%1384.05%811.Denmark83.07%74.70%862.15%2979.65%1512.Taiwan82.14%73.02%1084.13%663.54%4113.Thailand81.36%58.64%2277.67%1178.07%2114.France80.4

317、0%60.20%2062.60%2875.26%2715.Poland79.80%50.20%2973.40%1779.87%1416.Canada79.20%60.80%1972.40%2076.35%2417.Indonesia78.10%72.29%1177.13%1283.69%918.The Netherlands77.51%62.45%1865.24%2579.51%1719.Israel76.60%54.00%2762.00%3173.37%2820.Malaysia76.25%78.04%776.05%1478.51%1921.Germany76.20%54.80%2653.8

318、0%4175.53%2622.South Korea75.54%69.23%1374.95%1569.77%3623.Nigeria75.00%58.20%2379.88%1088.33%524.Norway73.85%62.48%1759.08%3573.22%2924.United Kingdom73.85%46.91%3662.08%3079.55%1626.Ghana72.65%56.69%2572.85%1981.65%1227.New Zealand71.73%59.26%2161.01%3272.82%3028.Turkey69.80%48.80%3360.80%3362.34%

319、4229.Sweden69.40%50.40%2852.20%4271.55%3130.Kenya68.73%57.37%2484.66%587.93%631.Italy68.00%48.40%3458.40%3670.47%3332.Australia67.64%49.22%3254.84%3777.61%2233.Spain67.20%43.20%3754.80%3869.34%3734.South Africa65.94%49.60%3073.31%1882.02%1135.Brazil64.60%48.20%3573.80%1688.59%436.Ireland62.25%41.50%

320、3954.35%4070.08%3537.Peru61.09%41.44%4072.18%2167.13%3938.Mexico60.80%49.40%3169.00%2275.68%2539.Argentina 56.19%31.83%4260.12%3471.54%3240.Chile54.80%36.80%4154.80%3870.30%3441.Japan51.15%64.23%1668.85%2368.75%3842.Colombia48.35%41.75%3864.85%2777.11%2321 Where scores are bold italics,it indicates

321、a joint rank and score with another market.2022 Global Financial Inclusion Index 3938 Key trends in the relationship between the Global Financial Inclusion Index and populations perceptions of financial inclusion in their marketFive markets rank in both the top 10 overall for the Global Financial In

322、clusion Index analysis and also by consumer sentiment:Singapore,the U.S.,Hong Kong,Finland,and Switzerland.Similarly,five markets rank in both the bottom 10 for the Index analysis and consumer sentiment:South Africa,Brazil,Mexico,Peru,and Colombia.The overall correlation coefficient between the Inde

323、x rankings and consumer sentiment rankings is 0.48.This implies a positive relationship between both data sets.However,its not very strong and there are some notable trends and outliers.Population sentiment rankings are higher than the Index rankings in 19 markets.The opposite is true in 20 other ma

324、rkets,where individuals reported feeling less positive about financial inclusion than their markets rankings in the Index.In three markets,consumers perceptions of financial inclusion matched their Index rankings.In most cases(64%),the difference in the rankings of a given market between the two dat

325、a sets falls within a 10-point margin,yet some markets show significant discrepancies between the financial inclusion support which governments,financial services companies,and employers provide,versus how their populations perceive financial inclusion.Of the 19 markets in which population sentiment

326、 rankings are higher than the Index,14 are in Asia,Southeast Asia,the Middle East,and Africa.For nine out of 14 European markets tracked,the Index ranking is higher than the ranking given by the population survey.The largest gaps where the population survey ranks financial inclusion higher than the

327、Index can be seen in developing and emerging markets:Saudi Arabia (28 points),Vietnam(28 points),India(23 points),Nigeria(17 points),and China(16 points).The largest gaps where the Index ranks markets higher than the population survey can be seen in developed economies:Sweden(26 points),Australia(25

328、 points),Japan (19 points),Ireland(15 points),and New Zealand(15 points).In general,the survey suggests that emerging market populations appear more satisfied with the extent to which their local institutions provide for their financial inclusion than the underlying data analyzed in the Index sugges

329、t they do.One interpretation of this might be that in lower income economies with higher poverty levels and large wealth divides,the expectation people have for their own financial well-being is lower.By contrast,the populations of larger,wealthier,developed economies have greater expectations and h

330、old their institutions to a higher standard.In these markets,there are government and regulatory financial safety nets in place and access to credit is easier,which in turn creates a higher bar for what an individual believes their financial circumstances ought to be.Spotlight on the United States20

331、22 Global Financial Inclusion Index 4140 Spotlight on the United StatesUnited StatesOverall score68.28Rank2Government support score56.95Rank14Financial system support score76.72Rank1Employer support score81.28Rank2The strong performance of the United States in the Index,ranking second out of all 42

332、markets,can be attributed to its excellent scores in the financial system support and employer support pillars,at 76.7 and 81.3 for each pillar respectively.The U.S.ranks second for employer support while securing the top spot for financial system support.For the financial system support pillar,the

333、markets performance is remarkable:The worlds largest economy attains scores of above 90 for five out of the seven indicators.In particular,the U.S.leads all markets in the enabler of small and medium enterprise(SME)growth and success indicatorwhich tracks business sentiment on whether a markets financial system enables small and midsize businesses to thriveshowcasing the optimism surrounding the U