I'm confused how Nordic countries accepted linking banking login with government ID. Neither of them is your friend and both of them are not a friend in a completely different way.
Brazil has the same. It's possible to login in the government platform by your bank login. Simplifies a lot for the general population that won't use password managers and so on. And, as banks use a 2FA, security is improved.
Probably because they're not corrupt America. They don't walk around checking their back every minute for "Uncle Freedom" screwing them over.
That seems better than the alternative in Belgium. There the prevalent ID app "itsme" was launched by a consortium of banks.
Last year the government launched an goverment owned alternative "myGov" and now has to claw back market share, which I don't see working out.
It's not linking banking login with government id. It is a story of the banks solving an issue with remote identification and the system working well enough that the public/government also want to use it for other things.
Being able to sign contracts, engage with the healthcare system, file taxes, read messages from the government and do general banking without having to leave the home is a massive convenience boost.
We are a high trust society where the government or the banks are not out to "get you". The majority of the banks (not by volume but by numbers) are even in a structure without any ownership of the capital except for the depositors, and most of the profit from these banks that is not used to build the capital further is handed out to customers and/or the local community.