Disintermediation

What Does Disintermediation Mean?

Disintermediation is a financial term for a situation in which there are only two parties involved in a transaction and no intercessors are involved.

Insuranceopedia Explains Disintermediation

The presence of a mediator, such as a bank or a broker, in a business affair might lower the gains each party stands to make from the transaction. The commission collected by a real estate agent, for instance, might encourage someone to buy directly from the seller to avoid the added costs.