UK enters top ten global markets for financial inclusion, according to the Global Financial Inclusion Index

The United Kingdom is now the 10th most financially inclusive market out of 42 analyzed globally, according to the 2025 Global Financial Inclusion Index (the Index) from Principal Financial Group^® and the Centre for Economics and Business Research (Cebr).  

Now in its fourth year, the Index examines how governments, financial systems, and employers enable greater levels of financial inclusion across 42 markets. The report provides a comprehensive and comparative evaluation of financial inclusion on a global scale, ranking markets on a relative basis in addition to an absolute score. Globally, after two years of measurable improvements, progress in financial inclusion plateaued. 

The overall Index declined slightly to 49.4 out of 100, a marginal drop of 0.2 points from 2024. The main factor behind this decrease was a pullback in employer-driven financial inclusion, as a drop in business confidence amid trade and geopolitical uncertainty weighed on companies’ ability to offer more robust employee benefits, guidance, and flexibility.

The U.K.’s improvement in the rankings overall was driven by improvements in government support and financial system support pillars

For government support around financial inclusion, the U.K. rose two places in the rankings to 16th, driven by improvements in consumer championing regulations (up six places), awareness and uptake of government-mandated pensions/savings (up six places), and availability of government-provided financial education (up five places).  

Whilst the U.K. continued to be ranked 8th for support from the financial system, its score rose by 0.4 points, underpinned by improvements in a number of key indicators: enabling of business confidence (up seven places); enabling SME growth and success (up five places); and borrowers’ and lenders’ protection rights (up four places).

The data suggests the overall improvement in the U.K.’s financial inclusion is being felt by its population. The proportion of the U.K. population who say they feel financially included has increased from 59.4% last year to 67.6% this year. This jump reflects a broader theme in the Index where new political leadership typically corresponds with a more positive consumer perception of the extent to which they are being financially included.

Improving financial literacy would boost the U.K. economy and lower default rates on household debt

Our data shows that when people understand how to manage money, they’re less likely to default on loans, more likely to borrow responsibly, and can help grow the economy—an area where the U.K. performs well. Econometric modelling conducted by the Cebr as part of the research found that, on a global basis:

• A 1 percentage point improvement in financial literacy levels is associated with a 2.78 percentage point reduction in defaults on household loans.

• A 1 percentage point improvement in financial literacy levels results in significantly increased loan affordability and is associated with a 6.7 percentage point reduction in debt-to-income ratios. Correspondingly, a 10 percentage point increase in financial literacy is associated with a two-thirds fall in debt-to-income ratio.

• A 10 percentage point improvement in financial literacy levels could generate a 0.3 percentage point improvement in the rate of GDP growth—over and above the expected growth rate—after a four-year period.

Of the 42 markets tracked in the Index, the U.K. ranks 24th for financial literacy levels (down one place compared to 2024), with 39% of the adult population classed as fully financially literate. Cebr’s modelling demonstrates clear economic benefits of better financial literacy, indicating that, if the U.K. were able, hypothetically, to lift the financial literacy rate to 50% by the end of 2025, the U.K. could raise its projected cumulative GDP growth for 2026–2029 from 4.5% to 4.8%.

Seema Shah, chief global strategist, Principal Asset Management^®, comments: 

“The U.K. government can confidently say that its efforts to make its society more financially inclusive are having an impact and, according to the data, are being felt by the electorate.  

Of course, financial inclusion is much more than a political issue – it is a cornerstone of greater economic resilience, which, in turn, is a component in attracting more international investment.  After consecutive years of improvements, this was the first year that the overall financial inclusion score stalled globally. The main factor was a pullback in employer-driven financial inclusion across most markets, as macroeconomic pressures constrained companies’ ability to provide more robust benefits, guidance, and flexibility. Richer economies and markets that have invested in structural measures—from digitizing their banking infrastructure to rolling out financial literacy campaigns—enable greater access to and understanding of financial tools have built a more resilient framework for financial inclusion. In turn, this helps create a stronger foundation for economic resilience and, ultimately, promotes growth and attracts international capital.”

Explore the full report and learn more about the Global Financial Inclusion Index here.

Key findings from the Global Financial Inclusion Index:

The overall global financial inclusion score stands at 49.4 out of 100—a marginal drop of 0.2 points compared to 2024. 

However, this is markedly higher than 41.7, the score when the Index launched in 2022. In 2025, 20 markets showed annual improvements in their financial inclusion scores, while 19 out of the 42 markets analyzed experienced declines. 

Employer support slowed globally, with the worldwide score falling 0.6 points. 

Thirty five of 42 markets (83%) registered declines in their employer support scores – strongly suggesting the impact of geopolitical and trade risks on business confidence have caused companies to adopt more conservative approaches to employee benefits and flexibility initiatives. 

As employers pulled back, governments and financial systems stepped up efforts to enable better access to, and understanding of, financial products and services. 

Globally, the government support score rose 0.6 points, increasing in every major region and, across the wealthier regions of North America, Europe and the Middle East, the financial system score also rose. Thirty-five markets showed year-over-year improvements for either or both government and financial system scores.