In 2010, Nets launched NemID. NemID is a national eID solution for Danish banks and public websites providing online services.
Compared to Nets’ first product “Digital Signature”, the level of security was higher as it is a two-factor authentication solution. The first factor is knowledge or biometric factors, and the second factor is possession of a physical device. First the end-users authenticate by entering a password or using biometrics, and secondly, the end-user is prompted to enter a one-time password (OTP) from a code card, a code token or using the NemID code app (introduced in May 2018).
When using NemID for public services and private companies (ref. service providers), NemID only has one level of assurance. The banks introduced the so-called "Konto-kik" (ref. Account lookup), where the end-users log on by only using the NemID password. If the end-users want to transfer money, obtain a loan, or send an e-mail etc. the solution prompts the end-users to step up by using additional authentication. The end-users then must enter a code from the code card, code token or by using the NemID code app.
The penetration of NemID is up to 98% of the Danish population. Denmark is a digitalized society, and the deep penetration is a result from the strong cooperation between the Danish banks and the Government.
The Banks are responsible for the majority of NemID transactions. Most Danish citizens frequently log on to their online bank to check balance, transfer money, pay bills and much more. The Government saw an opportunity for the public sector to benefit from widespread use of eID, and in 2014 the Danish government made it mandatory for all public sites to use NemID.
The outcome that followed resulted in an additional expansion into the private sector, where companies saw the value in using the national eID solution as well. Today Danish citizens have access to more than 800 service providers in the private sector using the eID solution.
The latest NemID Image Analysis showed that the 98% usage is linked with "Trust", and it has become clear that trust and penetration in usage goes hand in hand. Additionally, we have been consistent in NemID's brand identity, and the end-users recognize NemID in all channels. We find that end-users perceive services using NemID as a secure and trusted service, which is an important quality stamp.