Disintermediation is the process of cutting out the financial intermediary in a transaction. The term can be used to describe a number of different scenarios, but typically refers to situations where technology allows buyers and sellers to connect directly, without the need for a middleman.There are several reasons why disintermediation can be beneficial. First, it can help reduce costs and improve efficiency. By eliminating the need for a third party, buyers and sellers can save on fees and other associated costs. Second, it can help create more transparency in transactions. When there is no intermediary involved, both parties have access to all relevant information about the deal.This helps ensure that everyone is acting in their own best interests and reduces the risk of fraud or misrepresentation. Finally, disintermediation can help promote innovation by giving new players access to markets that were previously dominated by large institutions. This creates opportunities for entrepreneurs who might not otherwise have had a chance to compete.
