- The elimination of intermediary agents in transactions between buyers and sellers.
- Withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest in instruments yielding a higher return.
- (banking, finance, economics) The removal of funds from a financial institution such as a bank for direct purchase of financial instruments.
- (business) The removal of an intermediary from a commercial transaction.
- The news industry is undergoing a massive disintermediation due to the ubiquitous low-cost communication made possible by the internet.
dis- + intermediation
disintermediation - Computer Definition
The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's website, the benefits of which are convenience, fast turnaround time and sometimes lower prices. Obviously, retail stores are very much against disintermediation. See re-intermediation.
disintermediation - Investment & Finance Definition
The removal of a middleman from a transaction. This term was used in the 1970s when relatively wealthy investors realized they could invest their funds directly in money market funds to earn higher interest rates and cut their bank out from the transaction. Disinter-mediation is also used in other industries where middlemen can be eliminated. With the advent of the Internet, disintermediation can also occur when a company selling its product online bypasses traditional distribution channels and directly links with buyers and suppliers.