e-GOVERNMENT IN FINLAND - ePractice.eu

government decided to establish automated national registers. Today, this national information database
allows ministries and agencies to generate valuable information and services within defined privacy rules. 9
Key Points - 6
x Finland’s success in promoting the rapid development of an information society has led to
a high level of confidence in the government’s role, especially with regard to setting the
policy framework for the development of a telecommunications infrastructure and market
growth and identifying new areas of need.
2.2.2 Online transactions
45. The overall level of development of the information society has important consequences for the
take-up of e-government services. Even when citizens are comfortable using “one-way” services such as
online information (see description of Stage 1 services under “Implementing E-government”, Part 5.2.1),
they may not have sufficient ease and/or confidence in the adequacy of privacy and security protection to
engage in online transactions or consultation (bank transactions are an exception 10 , see discussion below).
The percentage of actual online transactions in Finland has been modest. While more than half of those 15-
74 years old in Finland use the Internet on a regular basis, less than 7% use it for purchases. 11 At the end of
2001, according to Statistics Finland, only 9% of those interviewed had bought something over the
Internet. 12
46. Finnish ministries and agencies are aware that in addition to ensuring access and providing more
advanced, secure and joined-up electronic services, increasing take-up of e-government services requires
building users’ overall level of experience and skills with regards to e-commerce and e-government. In the
OECD survey, ministries and agencies were asked to indicate the five main factors that constrain customer
demand for electronic services. The two factors ranking highest are “the lack of experience in using
electronic services” (70%) and “the electronic service delivery not seen as sufficiently advanced”(60%).
These are followed by others factors, namely security and privacy issues, lack of access and insufficiently
joined-up/integrated electronic services in the public sector.
47. From a supply perspective, barriers to e-commerce in Finland – as discussed in the OECD
business survey, Businesses’ Views on Red Tape (2001) – are related to the general view that e-commerce
is not suited to the nature of some businesses, as well as to problems of payment security, uncertainty in
contracts and an insufficient customer base. From a consumer perspective, e-commerce does not seem to
be any more popular than traditional mail order. As a recent study by Research International underlined,
while many people use mail order in Finland, mail order sales, via both e-commerce and traditional means,
totalled only EUR 580 million (excluding VAT) in 2001. This is only 2.5% of the entire retail trade market
in 2000, which is estimated at EUR 23 billion.
48. Unlike citizens, companies (at least large ones) seem to be more than ready to benefit from
electronic services. In order to understand why this is so, the experience of Nordea, Finland’s biggest bank,
9
Pietarinen, Ilmari (1998), Information Society Policy Development – Example of Finland. ICA Information General
Issue, p. 19.
10
According to Nordic Information Society Statistics, 90% of enterprises with at least ten employees use the Internet
for financial transactions.
11 Ministry of Transport and Communications (2001), Telecommunications Statistics 2001.
12 Statistics Finland (2000), Mobile Phones and Computer as Parts of Everyday Life in Finland.
33