Disintermediation

What is 'Disintermediation'

Disintermediation, in finance, is the 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.

BREAKING DOWN 'Disintermediation'

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

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