Estonia approves its biggest-ever e-state reform, LHV becomes the first Estonian bank to plug accounts into AI assistants, and Telia blocks over half a billion cyber-attacks on businesses in six months.
Welcome to the July edition of Kood Letter!
News
Government Approves the Biggest E-State Reform in Estonia’s History
On 16 July the government approved a sweeping digital-state overhaul it calls the most significant reform in the history of the Estonian e-state. The plan cuts the number of state IT agencies from ten to six, trims roughly 200 positions, creates the new role of a state chief IT architect, and moves the digital state onto a new governance model.
The aim is to spend Estonia’s roughly €300 million annual IT budget more effectively rather than cutting it, with any savings reinvested. Core services will be centralised around the Information System Authority (RIA): the State IT Center (RIT) merges into RIA at the start of 2027, the State Infocommunication Foundation (RIKS) follows by mid-2029, and the Centre of Registers and Information Systems (RIK) becomes the Digital State Center, operating internationally as GovTech Estonia. A new Digital Council and the chief IT architect will steer technical decisions, push the state away from single-supplier lock-in, and make shared data, platforms and AI the default.
LHV Becomes the First Estonian Bank to Connect Accounts to AI Assistants
LHV has launched a solution that lets customers connect their bank account to AI tools such as Claude or Cursor and query their finances in natural language, a first for Estonia and something only a handful of European banks offer. Customers can ask an assistant how much they spent on dining out last month or request a three-month statement, with the AI pulling answers directly from account data.
The integration is built on the Model Context Protocol and the same security principles as internet banking: access requires Smart-ID, Mobile-ID, biometric or ID-card authentication, the connection is read-only, stays active for 30 days, and can be revoked at any time. It is launching as a beta.
Estonia’s E-State Warned About Concentration, Cloud and AI Dependence
Alongside the reform, officials have flagged that Estonia’s digital state faces growing structural risks: too little distribution and redundancy, and heavy dependence on a small number of cloud and AI providers. Much of the concern centres on reliance on US hyperscalers, with Microsoft 365 underpinning large parts of the state’s workstation estate.
RIT is running a pilot from this autumn to test how viable it would be to reduce dependence on providers such as Microsoft, Google and Amazon, building in backup authentication that works both in the cloud and on the ground. RIT director Ergo Tars said there is no plan to abandon the big providers, only to have tested alternatives ready if cost, data-location risk or an EU-level decision ever forces a move.
Mai Kraft Takes Over as Head of Estonia’s National Cyber Security Centre
As of 1 August, Mai Kraft is the new Director of the National Cyber Security Centre of Estonia (NCSC-EE) at RIA and Deputy Director General for Cyber Security. She succeeds Gert Auväärt, who is becoming Estonia’s Ambassador to Canada. Kraft spent the past eight years as Chief Information Security Officer at Elisa Estonia and holds a Master’s in Cyber Defence from TalTech.
Her stated priorities: modernising critical digital infrastructure, preparing for the quantum era, and helping both public and private sectors adopt new technology securely.
Cyber
Telia Blocked Over Half a Billion Cyber-Attacks on Estonian Businesses in Six Months
Telia Estonia’s security service Turvanet blocked more than 541 million cyber-attacks against its business customers between January and July 2026, including over 249 million in the second quarter alone. The scale reflects how routine large-scale attack traffic against Estonian companies has become, and how much of it is absorbed before reaching a target.
July in Cyberspace: Defaced Websites, Service Disruptions and Bank Phishing
RIA registered 1,044 cyber incidents in July. The standout trend was website defacement: RIA identified over a hundred defaced Estonian websites, most running the Joomla content management system, with access likely gained through vulnerabilities in Joomla plugins. RIA urged administrators to remove the content, update their software and change admin credentials.
Phishing emails posing as Swedbank also circulated again, urging recipients to update their details via a link. Banks never ask customers to confirm details by email.
Nearly a Hundred Young Cyber Talents Gather in Estonia for CyberWizards
RIA’s international cyber camp for girls, CyberWizards, ran for the fourth time in Kehtna, bringing 93 girls from nine countries together for a week of hands-on cyber-security tasks, programming basics and workshops. Alongside participants from Latvia, Poland, Czechia, Hungary, Ukraine and Cyprus, girls from the Bahamas and Fiji took part for the first time, and 43 came from Estonia.
Upcoming Events
EstBAN Monthly Pitch: Economic Outlook & Startup Pitches with Coop Pank
Date: September 24, 2026 (17:00)
Location: Tallinn
An EstBAN pitch evening opening with a keynote by Arko Kurtmann, CEO of Coop Pank, on economic trends, risks and opportunities, followed by startup pitches and networking.
More information: luma.com/estban-dje5
ruum demos. party.
Date: Late summer 2026 (17:30, see registration)
Location: Tallinn
The closing night of ruum’s six-week summer residency. The top six of 27 teams demo their work, followed by a party with DJ Bilt.
Registration: Register here
EstBAN x Tehnopol Pitch Event
Date: November 19, 2026
Location: Tehnopol Science and Business Park, Mäealuse tn 2-4, Tallinn
A joint pitch event with Tehnopol featuring promising startups, investor insights and networking.
Registration: Register here
kood/Empower Coding Bootcamp
Date: October 6–9, 2026
Location: kood/Jõhvi
A beginner-friendly 4-day coding bootcamp for women in the Ida-Viru region. Part of the kood/Women program, supported by Swedbank. Accommodation, lunches and one dinner included.
More information: kood/Garage48 Empowering Women
Garage48 Empowering Women Hackathon
Date: October 16–18, 2026
Location: kood/Jõhvi
A 3-day hackathon helping women in Ida-Viru County turn a first business idea into a working prototype. No prior coding or business experience required. Registration is open until 30 September.
Registration: Register here
Vibe_Sprint 2026
Date: September 18–19, 2026
Location: Mektory, Tallinn
TalTech Startup Centre’s flagship hackathon: 24 hours of building for devs, designers and wildcards, with a heavy “vibe coding” twist. AI-assisted prototyping is encouraged.
More information: vibesprint.startupgarage.ee
City Resilience Hack
Date: September 24–25, 2026
Location: Energy Discovery Center, Põhja pst 29, Tallinn
Application deadline: September 10, 2026
A €75,000 prize fund hackathon by the City of Tallinn and Tehnopol, with partner cities Valencia, Helsinki, Dnipro and Lviv. Challenges span smart city platforms, resilient critical systems, crisis communication, and health and social resilience.
Apply: tehnopol.ee/en/project/city-resilience-hack
Garage48 Future of Wood 2026
Date: October 16–18, 2026
Location: EWERS Tehnomaja / TSENTER, Väimela, Võrumaa
A three-day makeathon for students, designers, engineers, and wood industry professionals to prototype sustainable solutions for forestry, wood processing, and the circular economy. Food is included; bring your own sleeping bag.
More information: Garage48 Future of Wood 2026
Job Offers
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See you next month!