Disintermediated

Disintermediated is an adjective describing the state or process in which intermediaries are removed from a transaction or value chain, often through digital platforms, automation, or direct connections between producers and end users. The term is commonly applied to markets that relied on brokers, distributors, or financial middlemen, where buyers and sellers interact directly, reducing or eliminating traditional gatekeepers.

Industries frequently cited include finance, publishing, retail, and communications. Direct lending platforms and payments apps connect lenders with borrowers or merchants without banks or brokers. Self-publishing tools and streaming services enable creators to reach audiences directly, bypassing traditional distributors. Direct-to-consumer brands sell online or via owned stores, cutting out wholesalers. Platforms in telecoms and travel can shorten or reorganize the chain between providers and customers.

Disintermediation can lower costs, increase price transparency, and give producers more control and access to data. It can spur innovation and competition, especially for smaller participants. However, it may also reduce consumer protections, raise search and verification costs, and concentrate power in a small number of platforms. Job displacements among traditional middlemen are common, and regulatory scrutiny often follows to balance efficiency with fair competition.

Disintermediation is not necessarily permanent. Markets may undergo reintermediation, with new intermediaries performing value-added functions once provided by previous players. The term disintermediated thus describes a state that can be transitional or ongoing, depending on technology, regulation, and market structure.