Financial inclusion improved globally for the second consecutive year, with improvements across all regions and subregions, according to Principal Financial.

The third edition of the Global Financial Inclusion Index revealed that even though all 41 markets analyzed saw improvements to financial inclusion, consumer perception of financial inclusion dropped in 39 out of 41 markets. This led to a drop from 74.2% to 60.5% in the overall global perception of financial inclusion.

The report also found that Singapore maintained its position as the world’s most financially inclusive market, followed by Hong Kong, South Korea, Switzerland and Sweden.

Meanwhile, Latin America showed the greatest improvement in financial inclusion due to advancements in digital financial infrastructure, according to Principal Financial.

Even though the financial inclusion score of the US remained unchanged year-on-year, the market now ranks outside the top five as its ranking fell from fourth to seventh.

The report indicates that the decline was primarily due to reductions in financial system support and employer support, which dropped from first to sixth place and from 12th to 20th place respectively. However, the country improved its ranking for government support, moving up three places to 16th.

Amy Friedrich, president of Benefits and Protection at Principal:  “As we see ongoing declines in how financially included people across the U.S. feel, employers are well positioned to help improve financial confidence,”

“Employer actions such as investing in benefits and providing guidance on financial topics can have significant impact on workforce wellbeing, which in turn drives greater retention and efficiency.”