Why Doesn’t Every Country Have eIDs? (And Why the Nordics Have Them)

Electronic identification has become an essential component of national infrastructure in many countries.

Nordic states—such as Denmark, Norway, Sweden, and Finland—are pioneers in this field, having come a long way in developing and adopting eID systems. National eID schemes are widespread in Europe, although their level of maturity varies.

But not every nation in the world has adopted eIDs. 

Why does their implementation vary so greatly?

What is an eID?

An electronic ID (eID) is a digital system for verifying a person’s identity online, which lets citizens access different online services. eIDs typically require a combination of something the user knows (like a password), something they have (a physical card or app), and something they are (biometric data).

Why do Nordic countries lead in eID adoption?

The Nordic countries started introducing the first national eID schemes in the early 2000s, each adopting a different approach:

• Denmark: The Danish MitID is a result of collaboration between the public sector and financial institutions. Implemented through a public procurement process, the system today is owned and managed by the MitID partnership, which includes the Agency for Digitisation and Finance Denmark.
• Norway: The Norwegian BankID is owned and provided by the banks. The banks issue BankID to individuals, and the government recognizes and accepts it for access to public services. 
• Sweden: similar to the Norwegian model, the Swedish BankID is provided by the banks and accepted by the government. 
• Finland: Finland has a tightly regulated framework for eIDs, where eID issuers are subject to approval and compliance audits by the national supervisory authority, Traficom. The collaboration between Finnish banks began in the 1990s with the TUPAS specifications, evolving into the Finnish Trust Network (FTN) in 2019. Today, 10 banks issue FTN-approved eIDs, alongside Mobile ID (Mobiilivarmenne), which is provided by three main mobile operators.

Despite following different models, these countries have achieved significant success in eID implementation. This success can be attributed to advanced digital infrastructure, strong government support, and a high level of public trust in both governmental institutions and technology, among other things.

• Digital infrastructure: Over the past two decades, Nordic countries have invested heavily in digital infrastructure, which now supports secure and widespread eID use.
• Government support: Governments in the Nordics view eIDs as an essential tool for modernizing public services and increasing efficiency. Their commitment to digital transformation results in legislation and policies that promote secure digital identification systems.
• Security and privacy considerations: The Nordic countries have implemented strict protocols to protect citizens' data. Their national eID systems are built to be highly secure, with significant investments being made to strengthen resilience against cyberattacks and online fraud. 
• Trust in government and technology: The Nordic region is known for a high level of trust in public institutions. Citizens are more likely to embrace digital services and eIDs when they feel confident that their data will be protected.

Why don’t all countries have eIDs?

While eIDs have proven effective in the Nordic region, many parts of the world have been slower to implement them, for several reasons.

• Cost and resources: Developing and maintaining an eID system requires a substantial investment in technology, infrastructure, and security measures. Countries with limited resources or facing economic challenges may find it difficult to implement such systems at a national level.
• Digital divide: Many developing countries have challenges with internet access, digital literacy, and technological infrastructure. In regions with low internet coverage, eID adoption can be difficult, as citizens might not have the necessary devices and web access to use digital services.
• Cultural and political factors: There might also be resistance to adopting eIDs due to cultural differences, distrust of government systems, or concerns over privacy and surveillance. For example, countries with more authoritarian regimes might use digital identification systems to track and control citizens, which makes people hesitant to adopt them.
• Data privacy and security concerns: Concerns about data privacy and cybersecurity are major challenges to implementing eID schemes. Potential data breaches or misuse of personal information are real threats that require strong cybersecurity frameworks at the national level, which not every country has. 
•  Implementation complexity: Creating a secure, user-friendly, and interoperable eID system is complicated. It requires coordination between government agencies, the private sector, and technical experts. Some nations may find it tricky to integrate these stakeholders or face other political or bureaucratic roadblocks.

Summary

eIDs are gaining traction worldwide, with the Nordic countries leading the way. Europe is moving forward with a framework for ​​a trusted and secure digital identity for all Europeans under the new eIDAS 2.0 regulation. 

As digital transformation continues, more countries are likely to explore the benefits of eIDs, but due to various challenges, widespread adoption will take some time.