Intermediering

Intermediering (intermediation) is the process by which an intermediary connects parties to facilitate exchange, reduce transaction costs, and transmit information. In economics, intermediaries pool resources, screen participants, and arrange matching between buyers and sellers, lenders and borrowers, or information seekers and information providers.

Types of intermediaries include financial intermediaries such as banks, credit unions, and mutual funds; non-financial intermediaries such as brokers, rating agencies, logistics providers; and digital platforms that match demand and supply, payment processors, and information services like search or review platforms.

Functions commonly performed by intermediaries include screening and risk assessment, liquidity provision, price discovery, contract enforcement, and reputational assurance. They help reduce information asymmetry, lower search and transaction costs, and achieve scale economies.

Impacts and considerations: intermediation can improve market efficiency, expand access to credit and goods, and speed up transactions. At the same time, it can generate costs such as fees, pose conflicts of interest, and create barriers to entry due to network effects or market power. Regulatory attention often covers consumer protection, financial stability and supervision, anti-money laundering, data privacy, and competition policy.

Examples span financial and non-financial contexts: traditional banks facilitating loans; investment funds allocating capital; online marketplaces connecting buyers and sellers; payment processors enabling transactions; credit rating agencies assessing risk; and information platforms shaping consumer choices.

In the digital era, platform-based intermediation has grown, with network effects and data-driven matching becoming central to many markets.