disintermediate

/dɪsˌɪntərmˈidiət/

Other forms: disintermediated; disintermediating; disintermediates

To disintermediate in economics is to cut out the middleman, simplifying a transaction by selling directly to a consumer instead of using a distributor.

Disintermediate essentially means "remove the intermediaries," a word with a Latin root defined as "that which is between." So in the business and financial worlds, whenever you remove people or steps in the middle of a transaction, you disintermediate. In banking, this might mean buying stocks directly instead of hiring a money manager. And in manufacturing it could be selling goods online to customers, instead of hiring distributors and selling to stores.

Definitions of disintermediate

1. verb

   (economics) remove or cut down on the use of intermediaries between suppliers and buyers
2. verb

   remove money from a bank to invest directly in the stock market, eliminating the need of an intermediary such as a lender or broker
3. verb

   (bank or institution) stop acting as a broker or intermediary between borrowers and investors in the stock market