disintermediation

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Also found in: Financial, Encyclopedia.
Related to disintermediated: Reintermediation

dis·in·ter·me·di·a·tion

 (dĭs-ĭn′tər-mē′dē-ā′shən)
n.
1. The elimination of intermediary agents in transactions between buyers and sellers.
2. 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.

disintermediation

(dɪsˌɪntəˌmiːdɪˈeɪʃən)
n
(Banking & Finance) finance the elimination of such financial intermediaries as banks and brokers in transactions between principals, often as a result of deregulation and the use of computers

disintermediation

an economic phenomenon of the late 1970s and early 1980s in which investors, flnding that conventional savings and thrift methods did not pay sufficient interest to keep pace with inflation, transferred their funds to the money market and related savings and investment instruments, leading to a rapid growth in those resources and a loss of funds from institutions like savings banks.
See also: Economics
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References in periodicals archive ?
If you look at the infrastructure that's been built up around cryptocurrency, which is supposed to be a fundamentally peer-to-peer, decentralized, disintermediated asset class, the great irony is that the infrastructure really resembles the legacy system of Wall Street," Carlson said.
As mobile wallets move to centre stage, two key functions of banks - storing money and enabling payments - are being disintermediated.
In this new world, banks and payment service providers must comply with new standards, deal with complex legacy systems, compete with digital-first consumer-centric companies for customer mindshare and innovate to maintain their competitive edge or risk getting disintermediated that's a tall order.
Traditional banks understand that they must equip themselves with digital capabilities to avoid being disintermediated by new players in the industry.
There is no doubt the wealth management industry should certainly feel challenged to integrate digital solutions and feature sets or risk being disintermediated.
The first one is the fear of being disintermediated when an end customer starts to consume IT in a different way.
The development and deployment of this jointly managed global mobile solution represents a new, disintermediated and highly disruptive paradigm in branded mobile services delivery.
To avoid becoming disintermediated, brokers need to demonstrate their unique market knowledge, that they understand their client's needs and that they have the relationships to make things happen quickly and at the best price possible.
Tom Nodine of KPMG was quoted in the study as saying, "The incumbent insurance companies are now in an epic race to transform themselves to avoid being disintermediated by new digital competitors.
Numerous internet-based retail innovations have been launched across the world especially in the US, with disintermediated shopping services such as Google Express Shopping and Instacart.
and don't learn how to become far more innovative much more quickly, we run the risk of being disintermediated by those that can run faster.