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.

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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

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Etymology

Origin of disintermediation

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

Example Sentences

In our view, Oracle’s business should be more resilient than other software names facing artificial-intelligence disintermediation from vertically integrated customer entrenchment, and providing the compute for AI.

From Barron's

In our view, Oracle’s business should be more resilient than other software names facing artificial-intelligence disintermediation from vertically integrated customer entrenchment, and providing the compute for AI.

From Barron's

When the cycle happens, Dimon adds, it may be worse for software than other sectors, especially if AI disintermediation is greater than people expect.

From The Wall Street Journal

That makes it unlikely that customers will move away from using its mainframes toward decentralized platforms—a potential shift known as mainframe disintermediation—over the next several years.

From Barron's

Meanwhile, software stocks have been badly hit by fears of AI-driven disintermediation.

From MarketWatch