Implementation Models

Scaling interoperability across levels of governance and states in Brazil

Secure data exchange is the backbone of any digital service provision – whether for citizens, employees, or businesses. But in the Federative Republic of Brazil, with twenty-six self-governing states and over 200 million people, how does such a massive digital transformation get started?

Seeking to achieve digital transformation at a national level, at large, Brazil faces unique challenges. The sheer size, diversity, and complexity of its administrative landscape require solutions that bridge gaps between different states while enabling secure, efficient, and standardized data exchange among them. It's not by chance that X-Road has been present in the country for over five years already. Known locally as X-Via, the secure data exchange platform is enhancing interoperability and transforming public service delivery in several states.

Developments have emerged during this time, demonstrating both the successes and challenges of scaling X-Via. As the landscape of digital governance in Brazil continues to evolve, here are state-of-the-art updates on how different states have adopted X-Via, the decisions that have been made, and the lessons learned along the way.

With Fernando Santos, Head of Product Development at X-Via.

State adoptions and evolving use cases

Mato Grosso: continuity and expansion

Mato Grosso remains a key player in Brazil’s X-Via journey. An early adopter of X-Road technology (2019), the state has made significant progress in expanding its digital capabilities.

A key step towards consolidating a commitment to digital governance was Mato Grosso’s government decree, establishing X-Via as the official interoperability solution for the entire state. A full legal endorsement that provided the foundation for further development and integration, allowing the state to scale its X-Road usage beyond internal government departments. In more recent times, the Justice Department also expressed interest in utilizing the data provided through X-Road – to streamline citizen notifications and enhance legal processes.

All the while, by pursuing interoperability at the municipal level, Mato Grosso is tackling a more complex layer of governance, where political and resource constraints present new challenges to expansion. Still, this effort underscores a maturing stage in the state’s digital governance strategy.

Piauí: a rapid onboarding

The state of Piauí has emerged as a new success story in the X-Via landscape. Prompted by a visit to Estonia, where the governor saw firsthand the benefits of X-Road, Piauí decided to speed up its adoption of the secure exchange layer. Within six months, Piauí not only implemented X-Via but also established a citizen web portal that integrates over ten different organizations.

The deployment was fast, reflecting an experienced and accelerated approach to implementation also on the side of the technology partner, X-Via – drawing on the lessons learned from earlier experiences in other states. What made things swifter in Piauí was a clear collaborative approach in development, where multiple departments worked together to deliver integrated services, proofing the flexibility and scalability of the X-Via platform.

Amapá: something went south

Not all states that have started, though, are continuing with their digital transformation plans. Amapá, one of the initial states to engage with X-Via, has discontinued its use due to changing political priorities and, consequentially, domain-specific budgetary constraints. Unlike the cases of Mato Grosso and Piauí, where strong political will have driven successful adoption, Amapá’s withdrawal highlights the vulnerabilities of digital transformation projects to shifts in government focus and financial reallocations.

Stages of readiness, federating across states

As Santos puts it, Mato Grosso and Piauí are both utilizing X-Via but find themselves in different stages of implementation. Mato Grosso is in a phase of continuity, refining existing services while expanding to new use cases. In contrast, Piauí is in the startup phase, rapidly implementing its services through X-Road. The state has already managed to create a citizen portal and keeps working to increase the number of services offered.

One key takeaway from these implementations, though, is that federating X-Road instances across states comes more straightforward than first implementing them at the municipal level. State governments can leverage their broader resources to develop and manage ‘communicating’ digital infrastructure, providing services to citizens through a more streamlined platform. For example, even though not fully federated today, Piauí and Mato Grosso are working together to establish X-Road Trust Federation to further strengthen interoperability between states.

From increased usage, new technical and governance challenges

As X-Via scales up across different levels of government and states, new technical and governance challenges have come to the forefront. In Mato Grosso, for instance, stakeholders have expressed concerns over the performance implications of X-Road’s security layers. The mandatory security processes introduce a “middle layer” that causes additional overhead compared to direct point-to-point integrations, prompting some stakeholders to question the necessity of adhering strictly to these standards. On the other hand, X-Road’s security layers provide unified security guarantees that are foundational for trustworthy data sharing.

The tradeoff between performance and security is a common topic in information technology. In this case, these concerns reflect though the ongoing effort between balancing security and efficiency in digital governance. On these concerns, instead of resorting to technical fixes, the focus has been on addressing them through dialogue, highlighting the importance of secure data exchange protocols in maintaining trust and compliance.

In addition to that, the increased usage of X-Via, particularly in states like Mato Grosso, has led to a surge in data and log generation. This growth presents new challenges around data management, analysis, and storage. It’s a shift from simply establishing an interoperable framework to optimizing its functionality and sustainability. Themes that will be critical as the platform continues to expand, requiring a clear data management strategy and continuous improvements in handling large volumes of data efficiently.

Security as the cornerstone of X-Via's value proposition

Despite concerns over potential performance impacts from security layers, security remains the defining feature of X-Via's value proposition in Brazil. The platform’s protocols, including encryption and digital certificates, are essential for ensuring the integrity and confidentiality of data exchanged between government entities. These mechanisms, within X-Road’s architecture, have been central in ensuring trust among stakeholders and compliance with data protection regulations in the country.

X-Via’s adoption continues to grow with security at its core. Government agencies, including sectors like the Justice Department in Mato Grosso, rely on the platform’s ability to protect sensitive information while facilitating efficient data exchange. As Fernando Santos points out, “X-Road’s encryption capabilities are a decisive factor in gaining the confidence of both administrators and users. Security, based on our experience, remains the main value proposition.”

Beyond encryption, X-Via’s security features also ensure transparency and accountability in data management. Secure and traceable data flows safeguard citizens' rights while favouring inter-agency collaboration.

As Brazil’s journey with X-Road continues, security will remain the standard-bearer of its success. By maintaining such measures, X-Via ensures that digital transformation initiatives are built on trust, resilience, and truly citizen-centric services.

How X-Road gets a taste of the big city life in Buenos Aires, Argentina

Argentina is not a new pin on the X-Road® global map. For some years already, the data exchange layer has been identified as a valuable tool to modernise public administration by changemakers in the region.

It wasn’t long ago that we were talking about the experience of the Province of Neuquén. Now, we move to the City of Buenos Aires, which is very populated and with a vast metropolitan area. Buenos Aires embarked on a transformative journey to digitise its public administration, leveraging the X-Road data exchange layer to enhance efficiency and service delivery.

A pivotal goal to attain for a municipal government that serves so many people. But not hard to reach, thanks to the work that many in the administration have already put into moving the process forward. Diego Fernández and Axel McCallum, respectively, Secretary of Innovation and Digital Transformation and Undersecretary of Administrative Innovation at the City Government, take us through past and future steps of this endeavour, illustrating how very large cities in Latin America benefit from adopting the solution.

Background and institutional framework

"X-Road in Buenos Aires represents the next step in the digital transformation of the city that we began almost 16 years ago. It marks our evolution from a government relying on paper-based processes and outdated legacy systems to one that is modern and digital-first,” Diego Fernández begins with.

Argentinians usually care to stress how massive the city is and how big it feels. And context, in this case, does matter indeed – Buenos Aires is a city-state akin to Washington DC or Mexico DF, with a significant population and a daily influx of commuters. Naturally, the need for an efficient and interoperable digital infrastructure is paramount. On par with that, the Buenos Aires City Government aimed to make public service delivery more efficient and user-friendly.

This quest led them to the X-Road data exchange layer, a tried-and-tested solution previously implemented in several countries, known for its open-source license and government-oriented design. Adopting X-Road, known locally as X-BA, marked a significant leap towards achieving a digital, interoperable, intelligent, and proactive government.

The initiative was underpinned by a solid legal and institutional framework, including decrees to establish an interoperability hub, mandating compliance for both public and private entities to ensure seamless data exchange across the city's vast digital landscape. Legal and policy adjustments were crucial, ensuring every stakeholder across the city's digital domain operated within a unified framework, eliminating data silos and enhancing cross-sector collaboration.

Initial explorations in 2021 evolved into active development and implementation by 2022, with the first use cases deployed by mid-2023. The project was governed under the realm of Diego Fernández, with the Secretariat of Innovation playing a crucial role. Each ministry and secretariat within the government had focal points responsible for administering their Security Servers and onboarding their services. Such a decentralised approach allowed individual departments to feel more empowered while maintaining overall coherence and alignment with the X-Road framework.

Needs and challenges

Buenos Aires faced several challenges in its digital transformation journey. The city's existing infrastructure comprised siloed systems that hindered efficient data exchange and service delivery. Additionally, the absence of a unified digital platform made it difficult for citizens to access services seamlessly. The city government also grappled with technical challenges, including integrating X-Road into an existing complex server network, including around 4000 servers and a sophisticated network security infrastructure.

Beyond the technological hurdles of integrating X-Road into an extensive and diverse IT infrastructure, the city faced significant organisational and cultural barriers. Training government staff and aligning various departments with the new digital strategy was vital. So, the initiative required not only digital innovation but also a cultural shift within the government and among the citizenry towards embracing digital solutions. Furthermore, the city had to address the challenge of data security, ensuring that the new interoperable system adhered to stringent standards to protect sensitive information.

Another layer of complexity was developing the human capital needed to support this transformation. The lack of local expertise in X-Road software meant investing in training and skill development. To this end, collaboration with international experts and being part of the global X-Road community became instrumental in navigating the intricacies of the mission ahead. "One of the strong points of X-Road is the quality of documentation and the availability of the community to support new users. This was crucial as we configured our system and overcame initial technical challenges,” McCallum notes.

The solution

Implementing X-Road in the City of Buenos Aires addressed several challenges by providing a secure, interoperable platform connecting diverse government systems, enabling efficient data exchange and streamlining service delivery. The initiative's success was marked by the rapid development and deployment of digital services, with plans for further expansion and integration, including increasing the number of services offered through X-Road and enhancing the digital platform for citizen engagement.

"By 2022, we were running the pilot program, installing the central components and Security Servers. It wasn't just about the technology stack; it was equally about the governance stack. 2023 instead was about liftoff, having our first use cases implemented and really starting to use X-Road on our platforms for administrative procedures, marking a significant point in our journey towards digital transformation,” McCallum explains.

The solution, X-BA, does mark a new era of digital governance in Buenos Aires. The city not only streamlined data exchange across government departments but also significantly enhanced the citizens’ service experience. Services that once required much-loathed paperwork could now be accessed digitally, reducing wait times and improving accessibility. “For example, enrolling a child in kindergarten required parents to provide a vaccination certificate, which was a cumbersome process. We saw X-Road as a solution that could streamline such processes and make the infrastructure more efficient,” Fernández points out. Birth certificate issuance, too, is a notable example of improved access, availability, and delivery of public services.

Scaling the solution involves ambitious plans. By mid-2023, the government had introduced several services through X-Road, aiming to increase this number significantly by the end of 2024. By then, the City of Buenos Aires seeks to have a significant portion of its government services digitised and 30% of government services running on X-Road, reflecting a substantial shift towards digital service delivery. Additionally, the city government plans to integrate more private sector services into the X-Road ecosystem and explore federated systems with other provinces for broader data interoperability.

PlanetCross brings secure data exchange to the Japanese energy sector

Readers and X-Road® technology enthusiasts around the globe may have spotted a pattern by now – use cases of the data exchange layer prominently feature applications in the public sector. This is true to a certain extent, as X-Road is notably the backbone of Estonia’s digital public services. But private sector companies are increasingly considering taking up the technology, even far beyond the borders of Estonia.

In Japan, X-Road is now enabling efficient information exchange of clients’ data in the energy sector. National energy operator Nippon Gas Co., LTD (hereinafter Nichigas), partnering with tech startup Planetway, is using a proprietary product based on the X-Road data exchange layer to bridge back-office IT gaps between its subsidiary companies. Improving processing time of clients’ inquiries, Nichigas is already a case study of result-based applications of X-Road for the Japanese private sector.

Raul Allikivi, Chief Relations Officer at Planetway, and Yuki Matsuda, Executive Officer for the IT Department at Nichigas, introduce us to this shining example of how the technology can dramatically benefit operational efficiencyin private sector organizations everywhere.

Background and institutional framework

A series of reforms throughout the past five years has changed the configuration of the Japanese energy market. Since 2016, the progressive liberalization has given companies the possibility to change their organizational setting, and the way energy is distributed to customers nationwide. “For what concerns electricity, in that same year, the three largest companies on the market divided their operations respectively among three subsidiary branches – for power generationoperating the network, and retail. Then, in 2017, market liberalization affected the gas industry too. That is what allowed us to start selling city gas from then, and electricity as a retailer from 2018,” Yuki Matsuda explains.

Such changes are key to understanding what triggered the need for interoperability in the eyes of Nichigas’ executives. The company is currently the largest LPG (Liquefied petroleum gas) retailer in Japan, as well as the 3rd main LNG (Liquefied natural gas) retailer and pipeline operator in the Greater Tokyo area. The Nichigas group gathers a total of five companies between the mother branch and its subsidiary agencies. As one of the top actors in the Japanese energy market, it needs to take care of a vast customer base, counting over 1.5 million people.

Needs and challenges

Just to give an intuitive account of what having so many users entails, imagine one company serving a market larger than the whole population of Estonia (yes, children and elderly citizens included). “With information on users spread across five subsidiary companies, it is clear that this was meant to mess up the efficiency of our customer care. Upon receiving a call, the only piece of information our operators know is the name of the caller. But to provide correct, helpful responses, naturally they need to know much more,” Matsuda says.

That is when the cooperation between Nichigas and tech startup Planetway started. The needs were clear but, on the other hand, the solution was too. After the first contact in spring 2018, Planetway got to the drawing board. And in just one year, the company developed a secure data access platform based on the X-Road technology – PlanetCross.

“Traditionally, we are used to think of X-Road as a tool that predominantly benefits governments. However, in larger countries where digitalization is not so fast to pick up in the public sector, companies can take the lead. But this can happen only if top executives are deeply committed to digital transformation, see its business value, and have the human capital necessary to make the change,” Raul Allikivi explains.

From the match between the clear intents of Nichigas and the expertise provided by Planetway, the Japanese company could reap the benefits of the proprietary product based on X-Road created by the latter. The platform, tailoring the functionalities of the X-Road technology on the needs of the private sector at large, is currently active as a service for Nichigas’ operations. But the possibilities to further increase the pool of firms it serves are plenty. 

The solution

PlanetCross is an award-winning, highly secure data access platform. Drawing from almost 20 years of Estonian experience with X-Road, it incorporates all core features of the pioneering solution to establish bridges between relational databasesensuring availability and traceability of the information exchanged.

Source: Planetway

The platform is the backbone supporting call centre operations between Nichigas and its other four subsidiary companies. Currently, PlanetCross enables the Japanese energy group to handle around 1.5 million transactions each month through the company’s software Nichigas Search. And beyond capacity-building, the efficiency gains in average handling time of the requests received are also evident. From the initial 6 minutes per call, operators have now reduced it by 45 seconds.

“Planetway’s product and support empowered our effort to make our call centre operations more sophisticated,timely, and of higher quality. As liberalization of the energy sector increases in Japan, digital transformation can unlock opportunities also in the LPG market. In practice, PlanetCross can help reduce operational costs of switching from an energy company to another for customers – and not just due to the way data is handled, but also thanks to a change in the overall approach to relevant business processes. Ultimately, the platform gives an interesting IT character to our activities, and paves the way for further developments in this direction,” Yuki Matsuda says.

The vision for PlanetCross, indeed, stretches beyond the partnership with Nichigas for Planetway too. “In Japan, there are many players with vested interests in the IT field. But in that context, Nichigas is a great example of a relatively medium-sized company where the leadership has a strong vision, and capable people within the company can follow suit effectively. Other companies too, are considering the uptake of this solution to achieve higher efficiency in their operations, unsurprisingly. Scalability is certainly not a problem,” Raul Allikivi explains.

“We believe that, in the near future, private companies could become the main users of X-Road-based technologies. And as our CEO Noriaki Hirao said in a recent interview as well, we have already reached a point where corporations hold much more private data on individuals than governments do. But people should be able to still be the owner of their personal information. X-Road and PlanetCross provide a pretty good blueprint to understanding how this can actually take place. In the future, we hope these technologies and standards can become everyone’s first choice when sensitive private data is involved in environments that need efficient information exchange,” Allikivi concludes.

Improving environmental services in the Greater Helsinki area

With the purpose of increasing its capabilities in data exchange and access to key information, the Helsinki Region Environmental Services Authority (HSY) is currently working on joining Suomi.fi Data Exchange Layer, the Finnish X-Road environment, to foster the provision of water services and waste management in the Greater Helsinki area.

The project is currently undergoing the set-up phase, testing connections between information systems of relevant public authorities. Timo Vakkilainen, Project and Development Manager of Digital Services at HSY, describes how connecting information systems to the data exchange layer will impact the quality of performance for service users and the environment.

Background and institutional framework

In Finland, the open source data exchange layer solution X-Road ensures confidentiality, integrity and interoperability between information systems. The development of Suomi.fi Data Exchange Layer, the national X-Road environment, took place under the three-year-long National Service Architecture Programme (KaPa). Throughout the past two years, the Suomi.fi Web Service portal has been established as the single gateway to e-services for citizens and companies, shifting administrative tasks and practices to the digital environment.

As it often happens in e-governance, legislative changes proved to be necessary to enable the transition. The Act on Common Administrative E-Service Support Services (2016) required public authorities to join the Suomi.fi Data Exchange Layer, and HSY makes no exception. The environmental agency was looking into connecting with other public authorities such as the Population Register Center, the Patent and Registration Office, the National Land Survey of Finland. Now, by joining the Finnish X-Road environment, together with the use of Suomi.fi e-Authorizations and e-Identification services, HSY is aiming to collect information necessary to its activities in more efficient and accurate ways.

Needs and challenges

The accuracy of information is indeed one of the main concerns for HSY. In order to effectively provide services on water and waste management to the population of the Greater Helsinki area, counting over one million inhabitants, data on consumption and collected waste amounts and costs must be as up-to-date as possible. 

Though we may not be talking about real-time information, surely owners’ addresses for billing and other types of communications have to be spot on. At the same time, the financial situation of companies becoming customers of the HSY, or currently being listed as such, is also relevant. Such type of information can be gathered either from other public registers or through self-service reporting. Interoperability between public authorities can enhance necessary data exchange, and digital authentication tools enable users to submit reports themselves. 

However, before getting to fully roll out an efficient digital ecosystem, public entities sometimes have to go through a series of obstacles pertaining technical know-how and legislative frameworks. Though joining the Finnish X-Road was meant to be as easy as possible for any organization, “we realized from the beginning that we just did not have the resources to implement and maintain the servers needed to connect to Suomi.fi Data Exchange Layer,” Vakkilainen explains. “Luckily we managed to initially buy the Security Servers ‘as a service’ from a partner company and we implemented them in their cloud,” Vakkilainen says.

At the same time, the once-only principle had not yet been achieved as common practice in the Finnish data exchange environment. “Some legal obstacles did not make consuming services via Suomi.fi Data Exchange Layer work as seamlessly for everyone as it was supposed to. We would still need to send official requests for personal data to different actors” Vakkilainen warns, making the case for technical and legislative developments to progress as parallel lines towards the creation of a truly efficient digital ecosystem.

The solution

By joining the national Suomi.fi Data Exchange Layer, HSY will be able to request up-to-date information from other relevant public registers and increase the effectiveness of its operations. “I think we saw the advantages quite well from the beginning, without any push or pull from other actors. Suomi.fi Data Exchange Layer offers a great platform for data exchange and makes it easier to build new digitized services based on interoperability between national registers, for both citizens and companies,” Vakkilainen highlights.

To take advantage of the possibilities offered by different Suomi.fi services, provided by the Population Register Centre as the responsible authority, HSY is pairing efficient data exchange with e-Identification and e-Authorizations as well – the latter of which has been shortlisted for the Sharing & Reuse Awards 2019 of the European Commission platform Joinup. “HSY works to significantly increase the efficiency of its services for private users, companies, and institutions in Greater Helsinki. With servers relying now on HSY’s Azure Cloud and currently being tested, rolling out the first services will take place already in the next few months,” Vakkilainen announces.

From self-service reporting through secure identification to gathering accurate information about users and consumption. Interoperability can boost the effectiveness of environmental services provided for over one million citizens in Finland. As a municipal body and an institution, HSY saw digital development as an opportunity to be closer to people and enterprises in caring for the quality of the lived environment.

Iceland joins the Nordic interoperability league with Straumurinn

On a quest to improve the availability and accessibility of public services, Iceland becomes the latest country to implement its own X-Road data exchange layer environment. Straumurinn, the Icelandic name given to the platform, is set to increase the ability of the government to deliver online services for both public and private actors.

Increasing security and safety of the data exchange established, and with the goal to make the once-only principle a reality, X-Road was presented as the ideal solution to tackle organizational and efficiency issues in the Icelandic public administration. Guðlaug Dröfn Þórhallsdóttir, Project Manager for interoperability at Digital Iceland (Stafrænt Ísland – Ministry of Finance and Economic Affairs), explains what’s the current status of the project and what are the main advantages that Straumurinn is set to bring.

Background and institutional framework

The cooperation between Iceland and the Nordic Institute for Interoperability Solutions (NIIS) officially started in September 2018. NIIS and Iceland went on to officially sign the partnership agreement, making Iceland the first partner of the international development organization of X-Road, and giving the kick-off towards the development and implementation of Straumurinn.

At the time, government authorities in Iceland were aiming to build an interoperability platform that would suit the needs of the public administration, in cooperation with the European Union with regard to the procurement process. During such stage, X-Road was identified as the way to go to provide Iceland with its own national data exchange layer. The project falls within the framework of the Digital Iceland initiative, under the supervision and jurisdiction of the Icelandic Ministry of Finance and Economic Affairs. 

The Minister of Finance and Economic Affairs of Iceland Bjarni Benediktsson met with NIIS in November 2018 – in presence of Siim Sikkut, Government CIO of Estonia, Anna-Maija Karjalainen, Director General of Public Sector ICT for the Finnish Ministry of Finance, and Ville Sirviö, CEO of NIIS. On February 27, 2019, a high-level meeting between the Prime Ministers of Iceland and Estonia, respectively Katrín Jakobsdóttir and Jüri Ratas, became the perfect occasion for ministers to announce that Iceland is adopting X-Road for secure data exchange and interoperability.

Needs and challenges

Iceland is currently undergoing an effort to update and improve its public sector systems, and enable authorities to deal more efficiently with the exchange of data and information. Among the needs laid out emerge the desire to deliver most public services in a digital ecosystem, to enforce the once-only principle when it comes to data provision and applications, to cut on the time and effort currently necessary to fill out forms and requests.

The country fares particularly well when it comes to telecommunication infrastructures, for example with regard to high speed network coverage and internet usage – but providing public services online is a different story. “Citizens demand more and better online services, but our distributed technical environment of databases and departments is characterized by poor interoperability,” Þórhallsdóttir explains. As the Head of Division at Digital Iceland, she’s aware that some structural work needs to be done, particularly so to avoid the risk of just replicating flawed practices and procedures in a digital environment.

Currently going through the set-up phase of Straumurinn, the Icelandic government is facing two types of challenges – organizational and technical. “Changes in laws and legislation are necessary, as well as a clear understanding of the distribution of roles and responsibilities in a changed ecosystem. We are now proceeding with setting-up the infrastructure, though we know that we need to create also a system of seamless services around the implementation of the platform,” Þórhallsdóttir says. Moving from such level of awareness, contacts with Estonian and Finnish partners stay strong, as mistakes and success points always prove to be good examples of the dos and don’ts in structural changes involving technology.

The solution

It did not take long to realize that X-Road is a viable option to solve some of the issues that Digital Iceland is aiming to tackle. The data exchange layer originally developed in Estonia, and then adopted by a series of other countries, has proved to be a fundamental support to the establishment of secure data exchange between the public and the private, and to be one of the key elements in the making of a truly digital society. We have witnessed it in Estonia, and then with the cross-border data exchange taking place between Estonia and Finland. Now, Iceland is implementing its X-Road environment, Straumurinn, to satisfy citizens’ expectations and make most public services available and accessible online.

Straumurinn is the Icelandic way to efficiency and security in information exchange. After the set-up phase, the first services will be available through the X-Road environment, enabling government agencies and ministries to exchange information through a standardized and secure solution. “We will be able to communicate with citizens using different information systems or online interfaces, and we will do so in a more flexible and functional way than today. X-Road will make the exchange of information between Icelandic agencies and business organizations easier to handle, especially with regard to queries and form submissions, and it will help us build our State portal,” Þórhallsdóttir highlights.

And though it is true that the data exchange layer was born in Estonia, the X-Road family includes today also FinlandIceland, and the Faroe Islands. Could this be the prelude to a Nordic data exchange alliance? Cross-border cooperation reduces the workload of the public sector, and fosters international business activity through increased efficiency and reduced paperwork. Together, these countries are setting an example on how to build closer ties in a geo-economic area driven by digital governance and interoperability.

The business registers of Estonia and Finland start cross-border interoperability

The end of February 2019 brought great news for the enhancement of interoperability across borders. National business registers in Estonia and Finland are starting to exchange data between each other taking advantage of the opportunities given by X-Road, as the gateway to higher information accuracy and efficiency in handling queries.

Both parties involved have officially put their signatures on the agreement. Now, we take you through the main features of the cooperation on this project with Antti Riivari, Director General of the Finnish Patent and Registration Office (PRH), and Ingmar Vali, Head of Court Registration Department at the Estonian Ministry of Justice.

Background and institutional framework

The process that led to the signing of the agreement followed two parallel lines, not always moving towards the same goal at the same speed – there is a political side, and there is a technical side. Contrarily to what we could believe to be the issue in countries with a longer legacyon their shoulders, the technical aspects of the cooperation between the two business registers seemed to be cleared out by the end of 2017 already. However, in order to lay out and understand specifically what kind of data is going to be exchanged, and who has access to that information, there is the need for a specific agreement.

The final document with such information has been officially signed in February 2019, but it falls into place in the general institutional framework on digital cross-border cooperation between Estonia and Finland. Back in 2016, the Estonian and the Finnish Prime Ministers signed the joint declaration establishing the main lines of development to pursue for an international ecosystem in information exchange. Shortly afterwards, it became clear how the countries’ business registers could be among the first departments in the public sector to enjoy the advantages given by the implementation of X-Road.

Two things turned out to be necessary for this cooperation to come to life – refining the nation-wide implementation of X-Road in Finland and the compatibility with the Estonian system, as well as a specific definition of the people and the type of data that were to be involved in the information exchange. Though the cooperation on making the two systems match started right after the needs had been identified, it was only in 2018 that Estonia and Finland initially discussed the institutional draft agreement. Now in its official version, the document gives the green light to a few last operational tests and the practical beginning of the data exchange.

Needs and challenges

Antti Riivari (PRH) says it with a metaphor: “You need the road to drive on, and then you can have very different types of cars going to different places, but first you need the road.” X-Road in Finland was intended to provide a platform for all its departments and databases to communicate and cooperate. Then, after this initial phase, government agencies could actually proceed with more advanced practices of data exchange.

Despite not involving huge traffic of data and connections (for now), the Estonian and Finnish business registers identified a set of needs related to three main dimensions – quality of the data, efficiency, cost-effectiveness.

The topic of data accuracy is strictly connected to the long-lasting need for more security. “Let’s say that there is a company coming to Estonia to start a sub-unit or a branch here. If the mother company has some problems related to bankruptcy, or court cases, or annual reports, the business register in Estonia needs to know what is going on”, is the fitting example presented by Ingmar Vali (Ministry of Justice). Thus, enhancing the registers’ capability to gather the information they need results in a higher confidence in the data itself and less bureaucracy for both public and private actors, making checks and approvals more precise and quicker.

“But despite the general absence of problematic issues, an obstacle has been represented by fees”, Vali explains. While information can be accessed free of chargein the Estonian case, most business registers from other European countries require payments to access specific data. With the Finnish business register making no exception in this sense, this element accounted for the main talking point in the definition of the cooperation.

The solution

X-Road is now allowing the business register of Estonia and Finland to exchange queries directly, increasing the efficiency of the communications and improving the accuracy of the data. 

The recently signed agreement also generates more advantages for both the agencies and entrepreneurs – in the first place by cutting the costs of submitting requests, and in the second by eliminating the unnecessary paperwork that would have been required in country-to-country transactions. “It’s a need-driven process, we’re making sure that everything works as it should, and then we’ll explore future possibilities step by step. We now want to define and connect the authorities that would be most keen on accessing information on Estonian companies”, Riivari says.

Basic company details aside, the improved quality of the data and information security brings data exchange to the next level. “After reaching the full-scale implementation phase, borders and paper movement will basically stop, which is our goal because it makes everything more efficient and less costly. Imagine if these principles would take over across Europe! Estonia and Finland, in this sense, are doing well in setting an example for this idea”, Vali states.

By having X-Road as a national data exchange layer solution in Finland and Estonia, plugging in units and departments of the public administration to an X-Road trust federation between two countries comes easier. The case of the two business registers is another sign of how technology can favour international cooperation, and make routine work smoother and more efficient for both users and service providers.