disintermediation


Also found in: Financial, Encyclopedia, Wikipedia.

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
Mentioned in ?
References in periodicals archive ?
In a study titled 'Credit disintermediation from banks - Has the corporate bond market come of age?
The reasons for disintermediation in the financial systems can be found on both sides of supply and demand.
According to 'The Industry Gender Gap Report', the burden of job losses that will result from automation and disintermediation as a result of the Fourth Industrial Revolution will impact women and men relatively equally, with 52% of the 5.
She will replace John Boyles who will become Global Head of Disintermediation and Asset Securitisation.
Because if rates spike at a clip for which the carriers are ill-prepared, they may face disintermediation or asset-liability management (ALM) risk: the possibility that policyholders surrender all or part of their contracts to secure better crediting rates in alternative products.
Already the waves of democratization and disintermediation have transformed major industries--first computing, then publishing and retail--leaving behind permanently changed landscapes.
This is disintermediation, the abandonment of the "middleman" and institutions that used to do for us what we couldn't more easily do ourselves.
MakeMyTrip founder Deep Kalra said that with the ETB acquisition, the travel company is aiming at expanding its presence beyond South East Asia, adding that the website has been open to inorganic growth and acqua-hiring and was on a hunt for opportunities in 'supplier disintermediation, Tech Crunch reported.
in Carmarthen Disintermediation is, it seems, the greatest threat facing print.
European corporates are increasingly embracing funding disintermediation by substituting bonds for bank debt, and Fitch ratings believes structural factors will accelerate the use of this asset class over the next two to three years.