The United Kingdom has entered the top ten most financially inclusive markets globally, moving up to 10th place out of 42 countries in the 2025 Global Financial Inclusion Index from Principal Financial Group and the Centre for Economics and Business Research (Cebr).
This is an improvement from 11th in 2024 and reflects stronger support from the government and financial system.
The global Index score fell slightly to 49.4, down 0.2 points after two years of growth. The decline was mainly driven by reduced employer-led inclusion, as lower business confidence affected by trade and geopolitical uncertainty limited companies’ ability to offer benefits and guidance.
The UK’s ranking improved thanks to stronger government and financial system support. Government measures boosted consumer protection, increased participation in savings schemes and expanded access to financial education. The U.K. remained 8th for financial system support with gains in business confidence, SME growth and borrower and lender protection rights.
Data showed that the share of adults who feel financially included rose from 59.4 per cent in 2024 to 67.6 per cent in 2025. Cebr modelling also links higher financial literacy to lower household loan defaults, improved debt-to-income ratios and modest GDP growth.
The UK ranks 24th globally for financial literacy with 39 per cent of adults fully literate. A 10-point increase could reduce loan defaults, improve debt ratios and raise GDP growth by 0.3 percentage points over four years.
Principal Asset Management® chief global strategist Seema Shah says: “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 digitising 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.”
