Disintermediation refers to the movement of savers and borrowers from banks to financial markets.
When middlemen are eliminated from a supply chain or decision-making process, this is known as disintermediation. To invest directly means cutting out banks, brokers, and other middlemen in terms of finance. Disintermediation can save costs and boost efficiency, but it typically necessitates more research.
Online disintermediation frequently aims to bypass the retailer and distributor and might offer goods straight from the producer. The financial sector is where the word "disintermediation" first appeared. The investment market underwent disintermediation when investors were able to invest directly in various kinds of products.
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