Disintermediating the financing world
February 24th, 2006I first heard the word “disintermediating” while listening to a CEO pitch his internet-based financial services business concept to me. The word was tossed around so much inside this particular office, that employees were actually given homework, reading a book on “distintermediation” written by some academics. The CEO wound up disintermediating himself from everyone with his babble, and the board ended up disintermediating him from their pile of money.
This doesn’t mean I don’t like the term, or see it applicability to the financial world. Securities brokerage is one place where the tide has turned - who need a broker anymore? Private markets like personal lending and angel investing are next.
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