disintermediation

American  

[dis-in-ter-mee-dee-ey-shuhn] / ˌdɪs ɪn tərˌmi diˈeɪ ʃən /

noun

1. the act of removing funds from savings banks and placing them into short-term investments on which the interest-rate yields are higher.

---

disintermediation British  

/ dɪsˌɪntəˌmiːdɪˈeɪʃən /

noun

1. 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

---

Etymology

Origin of disintermediation

First recorded in 1965–70; dis- ¹ + intermediation

Example Sentences

The bigger threat from the internet, it turned out, was disintermediation.

From The Wall Street Journal

And Jefferies analyst Brent Thill forecast “another year of gradual AI monetization, with more meaningful growth contribution/acceleration needed to ease AI disintermediation fears, thus requiring more selectivity.”

From MarketWatch

But Zillow gets only a small percentage of its traffic from search engine marketing, and managing real estate listings is highly complex and regulated, limiting the risk of disintermediation—or cutting out middlemen.

From The Wall Street Journal

The topic of Google and the company’s ongoing disintermediation of the advertising business arose at Berkshire’s annual meeting in 2019.

From Barron's

“Our analysis suggests the impacts on bank disintermediation and lending could be manageable for the banking sector,” they said, with any impact likely limited in “plausible” levels of adoption.

From Reuters