But yes, it's owned by the banks not the state; if anything though this increases its weakness.
You can use BankID to identify with the tax agency, the public health services and police. (and more: this is just what I'm aware of) and there's an expectation that you have a BankID.
The main competitor is Freja+, or just Freja, or Freja eID. It's particularly popular among immigrants, as I understand it, though not as commonly supported, especially in the private sector. There is also a semi-public electronic ID, "Skatteverkets ID-kort", issued by the same company that produces swedish passports, which is owned by the french defense corporation Thales.