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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

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Word History and Origins

Origin of disintermediation1

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

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