noun the act of cutting out the middleman or intermediary in a transaction or process
In finance, disintermediation refers to the process of cutting out middlemen, such as banks or brokers, from transactions between two parties, typically to reduce costs or increase efficiency.
In the technology sector, disintermediation can refer to the disruption of traditional business models by digital platforms that connect buyers and sellers directly, cutting out intermediaries.
In marketing, disintermediation can occur when companies use online channels to reach customers directly, reducing the need for traditional advertising agencies or media outlets.
In e-commerce, disintermediation can occur when a company sells directly to consumers, bypassing traditional retail channels, to gain more control over pricing and distribution.
In supply chain management, disintermediation may involve eliminating unnecessary intermediaries in the distribution process to streamline operations and reduce costs.
In the publishing industry, disintermediation refers to authors bypassing traditional publishers and selling their work directly to readers through self-publishing platforms.
In the field of mental health, disintermediation can occur when patients seek information and support online instead of going through traditional channels like seeing a therapist in person.
Financial advisors may face disintermediation as clients turn to robo-advisors and online investment platforms instead of seeking personalized advice from a human advisor.
Retailers may experience disintermediation when consumers purchase products directly from manufacturers or online marketplaces, cutting out the need for traditional brick-and-mortar stores.