Principal Financial Group announced it will launch the Global Financial Inclusion Index in collaboration with the Centre for Economics and Business Research.
“1.7 billion people globally were reportedly not served by a bank or financial institution pre-pandemic.”
“The inaugural Index and its analysis will uncover key drivers shaping financial inclusion and exclusion across governments, employers, and the financial services industry in 40-plus markets,” according to the announcement.
The report, scheduled for September, will assess how these systems promote financial inclusion, as well as examine global consumer perspectives on how secure individuals feel. The goal of the Index is to “fuel actionable insights that can help improve financial inclusion now and in the future.”
Financial insecurity affects billions of people
According to the United Nations, 1.7 billion people globally were reportedly not served by a bank or financial institution pre-pandemic. The effects of the pandemic brought increased rates of poverty and widened the wealth and income gap, further exacerbated by the recent sharp spike in energy prices.
“Financial inclusion is at the foundation of global economic progress,” Principal chairman, president, and CEO Dan Houston said in a statement. “When people are excluded from the financial system it hinders their ability to earn, prepare for and recover from crises, as well as build for the future. Our Global Financial Inclusion Index will provide a clear, measurable view of financial inclusion so we can influence change and help more people and businesses have greater access to financial security.”
A clear understanding can advance economic progress
The Index will use employer and consumer surveying alongside verified public data to create a financial inclusion scoring system. Through consideration of the data points, it will evaluate the degree to which governments promote financial inclusion, examine the availability and uptake of financial products and services for populations, and assess the level of support employers provide to their employees in each market.
It will serve as a resource used across sectors—including policymakers, academia, and non-governmental organizations (NGOs), as well as businesses and the financial services industry.