What is disintermediation?

In simple terms disintermediation means cutting out the middleman. Disintermediation has become a buzz word in financial services in particular, as competitive and technological changes have done away with the need for established intermediaries. BANKS have seen much of their business slip away, such as lending to companies now tap capital markets directly.

Disintermediation refers to removing the middle man between a business, that produces a type of product or service, and their customers, who want to receive the product or service. This type of strategy empowers brands and customers to interact more directly with one another, providing organizations with more information about the needs of their target customers so they can continue to build their business to serve these expectations.