Characteristics Of Disintermediation - Internet Freedom & ICT Skills Movement

Nov 26, 2018 · 6m 56s
Characteristics Of Disintermediation - Internet Freedom & ICT Skills Movement
Description

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...

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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).
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Author Edzai Zvobwo
Organization Edzai Zvobwo
Website -
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