Definitions (2)
Popular Terms
1. Finance: Elimination of financial intermediaries (banks, brokers, finance houses) between the suppliers of funds (savers/investors) and the users of funds (borrowers/investees). Disintermediation occurs when inflation rates are high but bank interest rates are stagnant (usually due to government control), and the bank depositors can get better returns by investing in mutual funds or in securities. When interest rates start to rise, the investors turn again into depositors and reintermediation occurs.
2. Internet: Elimination (by the online sources) of the traditional middleman the intermediary between the seller and the buyer (such as an agent, broker, or reseller), or between the source and the recipient of information (such as an agency, official, or gate keeper).

Use 'disintermediation' in a Sentence

I didn't realize all the disintermediation that was going on by the investors and the borrowers because they didn't want a middle man involved.
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If you can build up enough capital to disintermediation yourself from those you used to borrow from you will save alot
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The disintermediation was vital to running an efficient business for our firm and we made new relationships that should last for years as well.
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