German bureaucracy is (in)famous for paperwork and using faxes. Citizens/residents have no unique identifier (more and more weakened recently) and need to present documentation for everything. If you have no paper birth certificate you are not born...
Finland has had much higher digitalization for decades. You have a person number and authorities store everything centrally. A big brother nightmare for Germans.
20 years ago many processes in Finland went quickly, much more smoothly than in Germany. However, recently more and more authorities went into meltdown. It takes 3 or 6 months to renew a passport (or you queue in the street for many hours to get it done without an internet reservation). Certificates needed for inheritance processes delayed for many months each, so in the end heirs don't get access to their property until years later. If an elder person needs a legal guardian because they are unable to handle banking or similar anymore, you are more or less openly told: Does not make sense queuing, they will die first.
Where the degradation came from I have no idea. At least digitalization is not a guarantee that things work smoothly. In some areas (but probably none of those examples I mentioned) failed IT projects are the direct cause that processes break down.