disintermediation

[dis-in-ter-mee-dee-ey-shuhn]

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

/ 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

Word History and Origins

Origin of disintermediation¹

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