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.