Open banking and instant payments are helping to revolutionize economies in Latin America and Asia
Markets that have invested in instant payments and open banking frameworks are showing the strongest progress in financial inclusion, according to the 2025 Global Financial Inclusion Index. This digital transformation of financial infrastructure is proving to be a powerful catalyst for expanding access to financial services and driving the adoption of digital finance.
South Korea and Brazil have evolved their open banking frameworks into comprehensive open finance systems, encompassing insurance, investments, and pensions. Singapore has taken a different approach with a non-mandatory open banking model, where the Monetary Authority of Singapore provides guidance to encourage data sharing rather than mandate it.
"The world's two most populous nations, China and India, have been pioneers in digital finance rollout," says Howe Chung Wan, head of Asian fixed income at Principal Asset Management®. "They've demonstrated it can be achieved quickly and successfully across societies of more than a billion people covering vast geographical areas. China's development of payment platforms, such as WeChat Pay, and its rapidly decreased reliance on cash, have been a blueprint for the wider region."
The success of instant payment systems is particularly striking. Brazil's Pix system, launched in 2020, has become the dominant payment method, used by approximately 155 million Brazilians (about three-fourths of the population) and 15 million companies. Similarly, Thailand's PromptPay has grown to around 80 million registered users making more than 2 billion transactions monthly since its launch less than a decade ago.
Digital ID systems have played a crucial role in this transformation. South Korea and Brazil, which introduced such systems 20 and eight years ago respectively, have seen these platforms facilitate secure online authentication, helping underbanked populations access online banking more easily. Thailand is following suit with its National Digital Identity (NDID) development, while Brazil explores blockchain integration to enhance security.
The data shows the most significant improvements in financial inclusion since 2022:
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| Market | Rank | Score | Rank | Score | Rank | Score |
| Argentina | +14 | +28.9 | +10 | +22.1 | +19 | +40.3 |
| South Korea | +23 | +25.6 | +16 | +20.6 | +19 | +28.7 |
| Brazil | +12 | +19.3 | 0 | +2.0 | +23 | +39.4 |
| Thailand | +11 | +18.7 | -7 | +7.3 | +18 | +32.6 |
| Singapore | 0 | +13.9 | 0 | +10.8 | +2 | +16.4 |
"We see technology as a powerful enabler of financial security. It's not just about availability—it's about empowering people to actively participate in their financial lives," says Kathy Kay, chief information officer at Principal. "In markets like Brazil and South Korea, we see how digital ID systems and open finance systems are helping consumers manage banking, insurance and investments seamlessly. Brazil's Pix reaching 175 million users shows how trust and simplicity can drive nationwide adoption. Thailand and Singapore are demonstrating how smart regulation paired with private innovation can expand digital reach and strengthen financial engagement."
Kay emphasizes that success in digital finance requires more than just technology:
Progress accelerates when digital payments are secure, integrated, and embedded in daily life. That’s the real measure of impact—when technology becomes invisible and financial confidence becomes universal.
