disintermediation: meaning, definition, pronunciation and examples
C2Formal, Technical, Academic, Business
Quick answer
What does “disintermediation” mean?
The removal of intermediaries or middlemen from a supply chain, transaction, or process, allowing producers and consumers to interact directly.
Audio
Pronunciation
Definition
Meaning and Definition
The removal of intermediaries or middlemen from a supply chain, transaction, or process, allowing producers and consumers to interact directly.
The process or trend of bypassing traditional intermediaries (such as brokers, agents, or distributors) in various industries, often facilitated by technology, leading to reduced costs, increased efficiency, and sometimes disruption of established business models.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning or spelling. The term is used identically in both varieties.
Connotations
Neutral to positive in business/tech contexts (efficiency, innovation). Can have negative connotations in discussions about job losses in intermediary sectors.
Frequency
Slightly more frequent in American English due to the prominence of Silicon Valley and fintech discourse, but common in UK business and economics.
Grammar
How to Use “disintermediation” in a Sentence
disintermediation of [NOUN PHRASE]disintermediation in [INDUSTRY/FIELD]disintermediation through/by [MEANS/AGENT]Vocabulary
Collocations
Examples
Examples of “disintermediation” in a Sentence
verb
British English
- The new platform aims to disintermediate traditional estate agents.
- Streaming services have disintermediated television broadcasters.
American English
- The app disintermediates taxi dispatchers.
- Fintech startups seek to disintermediate the banking sector.
adverb
British English
- The market shifted disintermediately towards direct sales. (Rare/Formal)
American English
- (Rarely used; 'directly' is preferred in most contexts)
adjective
British English
- The disintermediatory effect of the internet is profound.
- They adopted a disintermediation strategy.
American English
- This is a disintermediating technology.
- The company's disintermediation approach saved costs.
Usage
Meaning in Context
Business
The disintermediation of travel agents by online booking platforms has transformed the tourism industry.
Academic
The paper examines the socio-economic impacts of financial disintermediation in post-industrial economies.
Everyday
I bought the sofa directly from the factory website—it's all about disintermediation to get a better price.
Technical
Blockchain technology enables the disintermediation of trust, allowing for peer-to-peer transactions without a central authority.
Vocabulary
Synonyms of “disintermediation”
Strong
Neutral
Weak
Vocabulary
Antonyms of “disintermediation”
Watch out
Common Mistakes When Using “disintermediation”
- Misspelling as 'disintermeditation'.
- Using it to mean any simplification, rather than specifically removing an intermediary layer.
- Confusing with 'disinterment' (digging up a corpse).
FAQ
Frequently Asked Questions
No. While it often lowers costs and increases efficiency for consumers, it can lead to job losses in intermediary sectors, reduce personalised service, and sometimes concentrate power in a few large platforms that become the new intermediaries.
'Cutting out the middleman' is an informal phrase describing a single instance or action. 'Disintermediation' is the formal, abstract noun describing the large-scale, systemic process or trend of this happening across an entire industry or market.
Yes, a related process called 'reintermediation' can occur, where new intermediaries emerge, often in a digital form. For example, online travel agents (OTAs) reintermediated the hotel booking market after hotels first tried to sell directly online.
It is highly prevalent in finance (fintech, crowdfunding), retail (e-commerce, D2C brands), media (streaming vs. broadcast), and travel (online bookings).
The removal of intermediaries or middlemen from a supply chain, transaction, or process, allowing producers and consumers to interact directly.
Disintermediation is usually formal, technical, academic, business in register.
Disintermediation: in British English it is pronounced /ˌdɪs.ɪn.təˌmiː.diˈeɪ.ʃən/, and in American English it is pronounced /ˌdɪs.ɪn.tɚˌmiː.diˈeɪ.ʃən/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Cutting out the middleman (related concept, less formal)”
Learning
Memory Aids
Mnemonic
Think: DIS- (removal) + INTERMEDIARY (middleman) + -ATION (process) = the process of removing the middleman.
Conceptual Metaphor
THE SUPPLY CHAIN IS A PIPELINE (disintermediation shortens the pipeline). / MARKETS ARE NETWORKS (disintermediation removes nodes from the network).
Practice
Quiz
What is the primary result of disintermediation in a market?