New cooperative established in Finland to offer national authentication services – an alternative to tech giants

In the future, it will be easier for Finns to log in to digital services instead of managing different IDs, or relying on the systems of Facebook and Google, when a national digital identification service is introduced to the Finnish market. The Finnish Authentication Cooperative (Suomen Tunnistautumisosuuskunta) has been established to lead the project, inviting companies interested in promoting their digital business to develop the service together.

Founding members of The Finnish Authentication Cooperative are the Finnish Broadcasting Company Yleisradio, the media company Alma Media, cybersecurity services company Nixu and Digital Living International, which is the leading expert on data productization, data sharing and connected data economy technologies.

“Millions of Finns use numerous authentication solutions every day when reading news, ordering products or using various services on websites. However, it will be costly for businesses to maintain and develop authentication systems, and even consumers will have to remember passwords. The challenge will be met by a new national identification service, which will be launched to facilitate secure digital transactions,” the cooperative says in a press release.

The cooperative’s goal is to build a national authentication option that replaces passwords, through which Finns can easily and securely log in to the websites of various service providers. At the same time, companies can offer their customers more personalized services cost-effectively.

“By setting up a cooperative and combining different projects, we can finally invite all companies interested in growing their business digitally to develop this common service. Cooperative membership enables the sharing of costs and risks between actors. The aim is to offer low-cost alternatives also in the long term by lowering service fees as the number of users increases and development and operating costs are covered. Our goal is to act as an enabler of digital services,” describes Liisa Lundström, CEO of the Finnish Authentication Cooperative.

The cooperative does not seek to make a profit. The Finnish Innovation Fund Sitra is co-financing the project as part of its fair data economy -project. The cyber security company Nixu is responsible for the technical development and maintenance of the new authentication service. However, service development is based on the principle of open source and standards, which enables cooperation with other actors as well.

A new national identification service will be launched for consumers in late 2022.

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