disintermediation

dis·in·ter·me·di·a·tion

noun \ˌdis-ˌin-tər-ˌmē-dē-ˈā-shən\

Definition of DISINTERMEDIATION

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

— dis·in·ter·me·di·ate\-ˈmē-dē-ˌāt\ verb

First Known Use of DISINTERMEDIATION

1967