disintermediation

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Related to disintermediated: Reintermediation

Disintermediation

Withdrawal of funds from a financial_institution in order to invest them directly.

Disintermediation

The act of making a withdrawal from a bank or other financial institution in order to use the funds for investment purposes. For example, one may withdraw $10,000 from his savings account in order to buy a stock without the bank's intermediation. This has become less common with deregulation of banking because more banks can offer investment services, reducing the incentive to withdraw.

disintermediation

The withdrawal of funds from financial intermediaries such as banks, thrifts, and life insurance companies in order to invest directly with ultimate users. Disintermediation was more of a problem when financial intermediaries were limited in the returns they could pay to savers. Deregulation of financial intermediaries was intended to dampen the periodic swings toward disintermediation. Compare intermediation.

disintermediation

a situation where a FINANCIAL INTERMEDIARY such as a BUILDING SOCIETY is forced to reduce its lending operations because of the withdrawal of deposits from it and because it is unable to attract new funds. Disintermediation usually occurs (and then only temporarily) when an intermediary (see INTERMEDIATION) fails to adjust its borrowing rates on deposits promptly when interest rates rise, so its rates are insufficiently competitive vis-à-vis other deposit-taking institutions.

disintermediation

The situation that exists when depositors withdraw their savings from financial institutions and invest the money directly in the marketplace,usually because they can obtain a higher yield even though also running a higher risk of losing their money.

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He says: "We are positioning ourselves toward very strongly advocating the disintermediated model of public finance and PPP financing, creating all the elements and using all the existing tools in order to give life to this model, which we believe for the time being to be the only one viable for channeling vast needed funds into infrastructure projects."
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Tom Nodine of KPMG was quoted in the study as saying, "The incumbent insurance companies are now in an epic race to transform themselves to avoid being disintermediated by new digital competitors.
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and don't learn how to become far more innovative much more quickly, we run the risk of being disintermediated by those that can run faster."
Those whose value propositions still revolve around shopping for products and services are simply waiting to be disintermediated. They will be disrupted as surely as Uber is disrupting the taxi industry.
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The legal industry has disintermediated into a similar type of supply chain with choices including an array of LPOs and third party vendors in a variety of aspects of litigation support.
So to solve this problem, funding is now being disintermediated. Using platforms like Kickstarter, companies and individuals create campaigns to get customers to pay in advance for products that appeal to them, and then they use the funds as working capital to create and deliver the products.
While disintermediated search may be convenient, complex research problems are never going to be resolved as well solely by a search engine as they will by intermediation by an information professional.
If insurers don't embrace the changing times that connected cars present and represent, they risk being disintermediated by third parties that are more skilled in analyzing the vast amount of data that connected cars generate.
As the marketer is increasingly disintermediated, it will become increasing important for marketers to recognize the primary role that the consumer's VPSA plays in the marketing game and adjust their marketing efforts accordingly.