disintermediation [English]
Syndetic Relationships
- RT: blockchain
InterPARES Definition
n. ~ The elimination of third-party agents in transactions between two parties, often through the use of automated services to facilitate a direct interaction between the two parties.
Other Definitions
- Business Dictionary 2014 (†539 s. v. "disintermediation"): 1. Finance: Elimination of financial intermediaries (banks, brokers, finance houses) between the suppliers of funds (savers/investors) and the users of funds (borrowers/investees). Disintermediation occurs when inflation rates are high but bank interest rates are stagnant (usually due to government control), and the bank depositors can get better returns by investing in mutual funds or in securities. When interest rates start to rise, the investors turn again into depositors and reintermediation occurs. 2. Internet: Elimination (by the online sources) of the traditional middleman the intermediary between the seller and the buyer (such as an agent, broker, or reseller), or between the source and the recipient of information (such as an agency, official, or gate keeper).
- Gartner IT Glossary (†298 s.v. "HR disintermediation"): The practice of bypassing the HR department to define and implement technology practices to support human capital management (HCM) issues. When no clear HCM strategy is in place, business leaders formulate departmental plans and adopt the technologies they feel they need to support individual and group responsibilities for enterprise performance.
- OED Concise 10th (†440 s. v. "disintermediation"): Reduction in the use of intermediaries between producers and consumers, e.g. by involvement in the securities market directly rather than through a bank.
- Techopedia (†411 s.v. "disintermediation"): A process that provides a user or end consumer with direct access to a product, service or information that would otherwise require a mediator such as a wholesaler, lawyer or salesperson. ¶ Disintermediation cuts out the middleman. By using the Internet, companies and even manufacturers can deal directly with users or end consumers, which is a significant factor in decreasing the cost of servicing customers. The high market transparency often enables the buyers to pay less as they deal directly with the manufacturer, bypassing the wholesaler and the retailer. As another alternative, buyers can also buy directly from wholesalers.
Citations
- Gaur 2016 (†772 ): Disintermediation is defined as reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank. Historically, in the case of the financial industry, every transaction has required a counterparty in order to process the transaction. By definition, disintermediation goes hand in hand with disruption; after all, we are removing the middlemen and changing (in some cases, radically) the business model and incentive economies pegged to mediation. (†1950)