Meaning & use

Intermediation

noun·Academic

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.

Words with a similar meaning

mediationbrokering

Choose a synonym to suit the sentence. Meanings can overlap without being identical.

Words with an opposite meaning

disintermediation

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