disintermediation

noun

dis·​in·​ter·​me·​di·​a·​tion ˌdis-ˌin-tər-ˌmē-dē-ˈā-shən How to pronounce disintermediation (audio)
1
: the diversion of savings from accounts with low fixed interest rates to direct investment in high-yielding instruments
2
: the elimination of an intermediary in a transaction between two parties
disintermediate verb

Examples of disintermediation in a Sentence

Recent Examples on the Web The extensive sampling and quality assurance processes that go into ingredient sourcing and manufacturing are often sustained by the intermediate parties, and disintermediation cuts out of the equation. Eran Mizrahi, Forbes, 15 Feb. 2024 The process, known as disintermediation, was widely criticized by players in traditional finance for giving easier access to risky investment products for retail investors and placing more responsibility in the hands of platforms. Byleo Schwartz, Fortune Crypto, 6 June 2023 This past Wednesday, the Commodity Futures Trade Commission (CFTC) held a gathering of senior figures from the financial industry to discuss ‘disintermediation’, a key topic contained in a license change proposal sent by crypto exchange FTX.US to the U.S. futures regulator back in March. Javier Paz, Forbes, 28 May 2022 Cutting out the middleman Also known as disintermediation, the direct-to-consumer trend essentially means bypassing traditional intermediaries in the supply chain – such as retailers, wholesalers, distributors, advertisers – to connect directly with the end consumer. Bernard Marr, Forbes, 8 Nov. 2021 In the case of cybersecurity, disintermediation connects every threat discovery directly to the specific fixers, with the security team acting as the enabler rather than the gatekeeper. Yoran Sirkis, Forbes, 28 Dec. 2022 With a disintermediation approach, rather than having each of the myriad security alerts go through an unwieldy pipeline, each anomaly that arises can instead be sent directly to the relevant developers. Yoran Sirkis, Forbes, 28 Dec. 2022 Advances in how data is handled are a great example of how technology strides in one area contribute to the kind of technology breakthroughs that enable disintermediation. John Dillon, Forbes, 15 Nov. 2021 Digital music is a rare example of service sector disintermediation with concomitant price declines. Paul Swartz, Fortune, 25 Jan. 2022

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'disintermediation.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1967, in the meaning defined at sense 1

Time Traveler
The first known use of disintermediation was in 1967

Dictionary Entries Near disintermediation

Cite this Entry

“Disintermediation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/disintermediation. Accessed 25 Apr. 2024.

Legal Definition

disintermediation

noun
dis·​in·​ter·​me·​di·​a·​tion dis-ˌin-tər-ˌmē-dē-ˈā-shən How to pronounce disintermediation (audio)
: the diversion of savings from accounts with low fixed interest rates to direct investment in high-yielding instruments
Etymology

from the investor's bypassing of the intermediate institution

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!