Meaning & use
Intermediation
Last updated
The act of mediating or acting as an intermediary between two parties, especially in finance, where institutions channel funds between savers and borrowers.
See it in a sentence
Banks perform financial intermediation by taking deposits and lending them out to borrowers.
The rise of peer-to-peer lending platforms has changed how intermediation works in consumer finance.
A note on using this word
"Disintermediation," the removal of the middleman, is the direct opposite of "intermediation" and is a major theme in modern fintech.
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