disintermediation


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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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

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
-Ologies & -Isms. Copyright 2008 The Gale Group, Inc. All rights reserved.
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References in periodicals archive ?
Disintermediation has been the term of choice for more than a decade and it pops up in conversation with people in all the industries where it's taking place.
There is also disintermediation of funds to brokerage houses.
It's that wretched made-up word again: disintermediation.
Time was that any development in alternative risk would have the brokers crying foul and muttering "disintermediation." No longer.
Just think about the transition that banks have made from that cozy world to today's marketplace and the hurdles that had to be overcome: the loss of corporate borrowers to capital markets, the disintermediation to mutual funds, problems with developing-country debt, the near extinction of the thrift industry, and so much more.
"A second theme is the disintermediation that has occurred and efforts of those affected to ward off these threats to the middlemen.
These changes include consolidation of outlets, emergence of superstores, disintermediation, use of the Internet, and micro-marketing.
"Dot-coms that were concerned only about aggregating eyeballs or disintermediation or other so-called business strategies are in deep trouble or no longer standing," says Geoffrey Bock, a senior analyst for the Patricia Seybold Group, a market research firm in Cambridge, Mass.
He explains and defines business, stock market, and technology terms from disintermediation and triple witching to twisted pair and horizontal portal.
The word "disintermediation" is discussed in reference to future technologies.
The trend toward disintermediation is closely associated with the emergence of electronic commerce.