Disintermediation

What Does Disintermediation Mean?

Disintermediation is a financial term that describes a situation where only two parties are involved in a transaction, with no intermediaries participating.

Insuranceopedia Explains Disintermediation

The involvement of a mediator, such as a bank or broker, in a business transaction can reduce the potential gains for each party. For example, a real estate agent’s commission may motivate a buyer to purchase directly from the seller to avoid additional costs.