For business partners, retailers and merchants, not intended as consumer financial advice.
TL;DR: UK Financial Inclusion 2025
The UK has recovered to 10th place in the 2025 Global Financial Inclusion Index (Principal Financial Group and Cebr) after dropping from 7th (2023) to 11th (2024). While 67.6% of UK adults now feel financially included (up from 59.4%), this still means nearly 1 in 3 don’t. Additionally, only 39% are fully financially literate, ranking the UK 24th globally on this measure. Research shows raising financial literacy from 39% to 50% could boost GDP growth from 4.5% to 4.8% by 2029. The gap between access and understanding presents both a challenge and an opportunity for responsible retail finance providers. Payl8r addresses this through transparent, FCA-regulated point-of-sale finance (£50-£3,000) that accepts all credit types, operates as both first-line and second-line finance, and uses Open Banking technology for fair affordability assessments. True financial inclusion requires not just access, but confidence, capability, and informed choice.
Table of Contents
- UK Financial Inclusion 2025: Overview
- What’s Driving the UK’s Financial Inclusion Progress?
- Financial Inclusion vs Financial Literacy: The Critical Gap
- What Financial Inclusion Means for UK Retailers and Merchants
- How Payl8r Supports Financial Inclusion Through Responsible Retail Finance
- The Future of Financial Inclusion in the UK
- Frequently Asked Questions
- Key Takeaways
- UK Financial Inclusion Rankings: 2023-2025 Comparison
UK Financial Inclusion 2025: Overview
The UK has climbed back into the world’s top 10 markets for financial inclusion in the 2025 Global Financial Inclusion Index, moving from 11th to 10th place after previously ranking 7th in 2023.
It’s a sign that progress is being made across government support, financial systems, and consumer protection, all key pillars measured by Principal Financial Group and Cebr’s Annual Index.
The UK 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.
Seema Shah, Chief Global Strategist, Principal Asset Management
What’s Driving the UK’s Financial Inclusion Progress?
The UK’s improvement is driven by stronger government support, including better consumer regulations, increased pension awareness, and expanded financial education – alongside a more robust financial system that enables SME growth and protects borrowers and lenders.
According to the 2025 report, 67.6% of UK adults now feel financially included, up from 59.4% last year. While this represents progress, it also means nearly 1 in 3 UK adults still don’t feel financially included.
This progress reflects combined efforts from policymakers, traditional lenders, and fintech providers, all committed to making finance more accessible and fair across the UK market. The UK previously ranked 7th in 2023, dropped to 11th in 2024, and has now recovered to 10th place in 2025, showing renewed momentum in both financial access and government support.
Financial Inclusion vs Financial Literacy: The Critical Gap
While access to finance is improving, the Index highlights a continued challenge: only 39% of UK adults are fully financially literate, placing the country 24th globally on this measure.
That means many consumers gaining access to credit, loans, or buy now pay later (BNPL) products need clear, transparent information and support to use them confidently, a gap that responsible lenders are uniquely positioned to address.
Research shows that raising UK financial literacy from 39% to 50% could boost GDP growth from 4.5% to 4.8% by 2029, demonstrating the economic impact of the current literacy gap.
What Financial Inclusion Means for UK Retailers and Providers
For retailers introducing customers to point-of-sale finance, consumer credit, or flexible payment options, the UK’s financial inclusion ranking presents both opportunity and responsibility.
When shoppers have access to transparent, affordable finance options at checkout , whether interest-free credit, instalment plans, or retail finance, conversion rates typically improve and average order values often increase.
But access alone isn’t enough. Responsible retail finance providers must also prioritise:
- Clear communication: Plain-English terms, no hidden fees, transparent APR disclosure.
- Customer support: Helping shoppers understand repayment terms, total cost and affordability.
- FCA Consumer Duty compliance: Ensuring all consumer credit products meet regulatory standards and deliver good customer outcomes.
- Responsible lending: Appropriate affordability checks and credit assessments.
How Payl8r Supports Financial Inclusion Through Responsible Retail Finance
Financial inclusion has always been at the heart of Payl8r’s mission. We believe true inclusion must be built on transparency, support, and responsible lending practices, not simply access for access’s sake.
Our approach includes:
- Creating fair, FCA-regulated finance products (£50-£3,000, 3-24 months) that are easily understood
- Partnering with UK retailers who share our commitment to responsible retail finance
- Using real-time Open Banking insights to make fair, informed lending decisions, helping customers borrow responsibly and comfortably.
- Offering both first and second-line finance, giving more customers access to finance – including those with thinner credit files or less-than-perfect scores – whilst maintaining responsible lending standards.
- Providing clear information allowing customers to make informed decisions at checkout
By combining accessible finance with education and transparency, we’re helping to make financial inclusion sustainable, not just statistical.
The Future of Financial Inclusion in the UK
The UK’s return to the top 10 for financial inclusion highlights a positive momentum. But there’s still work to be done – the UK ranked 7th in 2023, and climbing back to that position will require progress on multiple fronts. To move higher and maintain gains, the focus must now shift from access alone, to include understanding.
Recent research highlights this challenge: a 2025 study by City, University of London found significant gaps in UK financial literacy, with disparities of up to 45% when demographic factors intersect. Meanwhile, industry experts have called poor financial literacy “the single biggest challenge facing financial services.”
True financial inclusion means more than participation in the financial system, it requires confidence, capability, and informed choice. That’s where responsible retail finance providers and transparent merchant partnerships play vital roles.
For UK retailers, offering retail finance isn’t just about increasing sales. It’s about being part of a more inclusive, transparent, and sustainable financial ecosystem, one where customers can access finance and understand how to use it wisely.
And whilst the UK has made progress on access, the work isn’t finished. Nearly 1 in 3 UK adults still don’t feel financially included, and climbing back to 7th place, or higher, will require continued innovation in how finance is offered, who it reaches, and how it’s communicated. The future of financial inclusion isn’t just about closing the literacy gap. It’s about ensuring access and understanding grow together.
Frequently Asked Questions
What is the UK’s financial inclusion ranking in 2025?
The UK ranks 10th globally for financial inclusion in 2025, according to the Global Financial Inclusion Index by Principal Financial Group and Cebr. This represents an improvement from 11th place in 2024, though the UK previously held 7th place in 2023.
What is financial inclusion?
Financial inclusion refers to the accessibility and availability of financial services to all individuals and businesses, regardless of their personal net worth or company size. It encompasses access to banking, credit, insurance, and payment services, along with the regulatory protections and financial literacy needed to use these services effectively.
What percentage of UK adults are financially literate?
Only 39% of UK adults are considered fully financially literate, placing the UK 24th globally on this measure according to the 2025 Global Financial Inclusion Index. This represents a significant gap between financial access and financial understanding.
How does point-of-sale finance support financial inclusion?
Point-of-sale finance supports financial inclusion by providing customers with flexible payment options at checkout, including interest-free credit and instalment plans. When offered responsibly with clear terms and FCA regulation, it enables customers to make purchases they might otherwise delay, while spreading costs over manageable monthly payments.
What is the difference between financial inclusion and financial literacy?
Financial inclusion measures access to financial services and products, while financial literacy measures the knowledge and understanding needed to use those services effectively. The UK scores well on inclusion (10th globally, 67.6% feeling included) but lower on literacy (24th globally, 39% fully literate), highlighting that access alone doesn’t guarantee informed usage.
What does FCA-regulated finance mean?
FCA-regulated finance means consumer credit products that comply with Financial Conduct Authority standards, including transparent terms, appropriate affordability checks, clear APR disclosure, and consumer protection measures. All legitimate point-of-sale finance providers in the UK must be FCA-regulated.
How can retailers improve financial inclusion?
Retailers can improve financial inclusion by: offering transparent point-of-sale finance options, partnering with FCA-regulated finance providers and providing clear information about payment terms where appropriate.
How does Payl8r support financial inclusion?
Payl8r supports financial inclusion by offering transparent, FCA-regulated point-of-sale finance (£50-£3,000, 3-24 months) with both interest-free and interest-bearing options. We accept all credit types, from prime to non-prime customers. We operate as both a first-line solution at checkout and as a second-line provider, sitting behind other finance options to serve customers who’ve been declined elsewhere. This second-line capability is where our commitment to financial inclusion is most visible, using Open Banking technology and dynamic risk-based pricing, we can extend access to customers that traditional lenders might turn away. By combining innovative technology with responsible affordability assessments, we help more people access the products they need. Financial inclusion has always been central to our mission.
What is second-line finance and how does it improve financial inclusion?
Second-line finance sits behind a merchant’s primary finance provider, capturing applications that have been declined. Payl8r’s second-line product extends financial inclusion by using Open Banking technology and dynamic risk-based pricing to assess customers that other lenders might turn away. Rather than leaving declined customers with no options, second-line finance provides a safety net, ensuring more people can access the products they need while maintaining responsible affordability checks. Helping to move financial inclusion from theory to practice.
Key takeaways
- UK ranked 10th globally for financial inclusion in 2025 (up from 11th in 2024, down from 7th in 2023)
- 67.6% of UK adults feel financially included (up from 59.4%) – but nearly 1 in 3 still don’t
- Only 39% of UK adults are fully financially literate (ranked 24th globally)
- Retailers offering point-of-sale finance must prioritise transparency
- Responsible lending practices are essential for sustainable financial inclusion
UK Financial Inclusion Rankings: 2023-2025 Comparison
| Year | Global Ranking | Financial Inclusion | Financial Literacy Ranking | Key Change |
| 2023 | 7th | Not available | Not available | Strong position in top 10 |
| 2024 | 11th | 59.4% | 24th | Dropped out of top 10 |
| 2025 | 10th | 67.6% | 24th | Recovered to top 10, +8.2% inclusion score |
Sources: Global Financial Inclusion Index, Principal Financial Group and Cebr (2023-2025). 2023 detailed metrics not available in comparable format to 2024-2025 reporting.
This blog is for informational purposes only and is intended for business audiences. It does not constitute an offer of credit or a financial promotion to consumers. Payl8r is a trading name of Social Money Ltd, authorised and regulated by the Financial Conduct Authority.