What the UK can learn from the Nordics’ use of digital IDs
4 minute read
Jonny Scott
December 8th, 2025
As the UK explores a national digital ID system, and caused a divide in opinions across the nation, it’s worth stepping back and examining how digital ID has already been used across the Nordics to streamline public services, boost the economy, and build citizen trust, while also acknowledging the trade‑offs.
Recently, the UK government has signaled interest in deploying a national digital identity (ID) scheme. Much of the public conversation has focused on immigration control, border security, and who should or shouldn’t be required to hold such an ID. These are important questions, but there is much more to the debate.
I recently went on a business trip to Denmark, with many Nordic representatives present, and learned a lot about the real impact of Digital IDs. The positives and the drawbacks.
The Nordic countries (Sweden, Denmark, Norway and Finland) provide one of the most advanced living labs for digital ID in the world. There, digital identity schemes are already deeply embedded in both public and private services. And rather than being merely tools of enforcement, they have improved efficiency, innovation and broader economic participation.
As the UK considers its own approach to digital IDs, we need to look at the Nordic experience.
The Nordic digital ID story in a nutshell
In countries like Sweden and Denmark, digital ID is part of everyday life. In Sweden, the scheme known as BankID is regarded by users as their “most important app”. A recent survey found 95% of Swedes said they have a high level of trust in BankID, and 99% said it is smooth and easy to use.
In professional commentary, the Nordic model is often held up as a “digital identity revolution” in which up to 90% of Nordic citizens have an electronic identity and use it daily for a wide range of services.
The common ingredients: strong collaboration between banks, telecoms and governments; high levels of institutional trust; and a design philosophy oriented toward service‑delivery, not just surveillance.
What about the digital ID works?
Economic growth and innovation
Digital ID offers a foundation for online trust, which is crucial in sectors such as banking, fintech, e‑commerce and government technology. e‑ID coverage across Norway, Sweden, Denmark and Finland sits between 70‑90 % of the population, with billions of transactions processed annually.
Streamlined public services
With digital ID, citizens can access tax portals, healthcare systems, social services, business registration and banking through one trusted account. For example, Sweden’s central bank noted that a state‑level digital ID could strengthen society’s resilience in crises and improve accessibility.
Trust and Inclusion (for many)
In Sweden’s survey, nearly everyone who used BankID reported ease of use and trust in the system. When citizens trust the infrastructure, more services can reliably move online, freeing up resources and improving responsiveness.
The other side: the downsides
Even in the Nordics, the picture isn’t perfect.
- Despite high adoption, certain groups are left behind, especially the elderly and those without smartphones or bank accounts
- In Sweden and other Nordic countries, major banks form the backbone of the digital ID infrastructure, raising questions about control and inclusivity
- When everything depends on one system, outages can cause major disruption
Voices from the Nordics
“I love how convenient everything is with BankID … the period when it went mobile and Swish also appeared, that was a big step forward in convenience.” (Source)
“MitID is super neat, one two‑factor system for logging in to anything that is legally bound to your name removes nearly all instances of online impersonation fraud.” (Source)
Implications for the UK
If the UK chooses to move ahead with a national digital ID, focusing on service‑delivery, economic infrastructure and inclusivity could tilt the balance toward broad public benefit.
Key principles must include:
- Making sure citizens see everyday benefits
- Explaining clearly how data is handled
- Ensuring inclusivity and fallback options
- Introducing governance and oversight for accountability
- Planning for resilience and interoperability with international standards
Conclusion
The Nordic example shows that digital identity works best when it serves people first, improving access, strengthening trust, and fueling economic efficiency. When citizens experience tangible benefits, digital ID becomes a tool of progress, not oversight.
About the author
Jonny Scott, Head of Cyber Advisory.
Beginning his career in IT at 17, Jonny first built a strong foundation in Corporate Sales, where he developed a deep understanding of customer needs and the commercial drivers behind technology adoption. Even in these early years, long before cyber security became the priority it is today, Jonny was drawn to the challenge and importance of helping organisations protect their people and data. This ambition guided his move into more strategic roles within business development, building out a security focused strategy for Phoenix.