Finance & Businessfreq: 1Discovered via Dusty Flow
Intermediation
/ɪnˌtɜːmɪˈdeɪʃən/noun
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Intermediation is the process by which a third party, such as a bank or platform, facilitates transactions between two parties to make them more efficient and secure. In modern contexts, it plays a key role in financial systems by managing risks and providing trust, but it's also evolving with digital tools like apps that cut out middlemen in e-commerce.
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In the 2008 financial crisis, the breakdown of intermediation chains in global banking amplified the meltdown, showing how interconnected these systems are—yet innovative solutions like peer-to-peer lending have since reduced reliance on traditional intermediaries by over 50% in some markets.
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