Disintermediation

AAA

DEFINITION of 'Disintermediation'

1. In finance, withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest them directly.

2. Generally, removing the middleman or intermediary.

INVESTOPEDIA EXPLAINS 'Disintermediation'

Disintermediation is usually done in order to invest in instruments yielding a higher return.

RELATED TERMS
  1. Disintermediary

    Anything that removes the "middleman" (intermediary) in a supply ...
  2. Reintermediation

    1. Individuals withdrawing funds from nonbank investments such ...
  3. Current Account, Savings Account ...

    CASA accounts are most prominent in middle and southeast Asia, ...
  4. Financial Intermediary

    An entity that acts as the middleman between two parties in a ...
  5. Return

    The gain or loss of a security in a particular period. The return ...
  6. Middleman

    A slang term for an intermediary in a transaction or process ...
Related Articles
  1. Investing

    What is the difference between a broker ...

  2. Mutual Funds & ETFs

    The Lowdown On No-Load Mutual Funds

  3. Options & Futures

    Savings Accounts Not Always The Best ...

  4. Fundamental Analysis

    What are the differences between a change ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center