Lintermédiation

Lintermédiation is a French term that translates to "intermediation" or "middleman services." It broadly refers to the process by which a third party facilitates a transaction or interaction between two or more other parties who might otherwise have difficulty connecting. This intermediary can be an individual, a company, or even a digital platform. The core function of lintermédiation is to bridge gaps, reduce friction, and create value in a market or process.

Various sectors employ lintermédiation. In finance, for example, banks and brokers act as intermediaries between savers and borrowers, or buyers and sellers of securities. Real estate agents intermediate between property owners and potential buyers or renters. Online marketplaces like Amazon or eBay are prominent examples of digital lintermédiation, connecting millions of buyers and sellers globally.

The services provided by an intermediator can include matching supply and demand, negotiating terms, facilitating payments, providing information, reducing risk, and offering dispute resolution. The intermediator typically charges a fee or commission for these services. Lintermédiation can increase market efficiency by making it easier and cheaper for parties to find each other and complete transactions. However, it can also introduce its own costs and potential conflicts of interest, depending on the specific arrangement.