“Financial inclusion,” which refers to individuals and businesses having access to affordable and beneficial financial products, has experienced a decline in the United States, based on recent industry research.
In the second annual Global Financial Inclusion Index compiled by the Centre for Economics and Business Research in London and Principal Financial Group based in Des Moines, Iowa, the U.S. dropped to fourth place from its previous second place position. Singapore remains in the top spot.
The rankings for 2023 include Singapore at the top, followed by Hong Kong, Switzerland, the U.S., and Sweden. The study analyzed 42 markets worldwide. Singapore’s small population of six million contributes to its ranking, along with its commitment to financial literacy, adoption of financial technology, and employer support.
More from Personal Finance:
Consumer watchdog future may be on the line at Supreme Court
Social Security’s trust funds are running dry. 4 things to know
How student loan bills resuming for 40 million impacts economy
An inclusive financial system relies on pillars such as employers, financial systems, and governments that affect consumer sentiment.
In the United States, consumer sentiment regarding financial systems, employers, and particularly the government has decreased. The percentage of individuals who believe the government supports their financial inclusion dropped from 72% in 2022 to 50% in 2023. Political polarization, exemplified by events like the recent threat of a federal shutdown, exacerbate the situation.
“This creates uncertainty and causes individuals to postpone decisions related to savings and purchases, which hinders their financial security,” explained Dan Houston, Chair and CEO of Principal Financial Group, in an exclusive interview with CNBC.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
