Trust and Verification Challenges Another challenge lies in the establishment of trust. The rise of the internet and digital platforms has drastically lowered the friction required to connect producers with end-users.
Removing Disintermediation Layers: Time, Cost, and Price
Individuals can now lend money directly to other individuals, bypassing the bank entirely. The Mechanics of Cutting Out the Middleman At its core, disintermediation is about efficiency.
In a direct marketplace, the onus shifts to the consumer to evaluate the credibility of the seller. Finance: Peer-to-peer lending and robo-advisors reduce the need for traditional banks and financial planners.
Removing Intermediary Layers to Cut Time, Cost, and Price
Historically, supply chains and distribution networks relied on layers of intermediaries to perform specific functions, such as logistics, verification, or retail placement. For instance, a manufacturer selling direct-to-consumer must now handle customer service, returns, and marketing, roles they might have previously delegated.
More About What does disintermediation mean
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