What does intermediation mean?
Intermediation is the formal process of acting between two or more parties who are negotiating, communicating indirectly, or trying to complete a transaction. It can involve a mediator, government, financial institution, or other intermediary helping bridge a gap, resolve a dispute, or facilitate an agreement. The term is especially associated with diplomacy and economics, where it may describe both a method of dispute resolution and the process of channeling funds from savers to borrowers. In general use, it sounds deliberate and institutional rather than informal. Although mediation is often used for a specific form of assisted negotiation, intermediation is broader: it can refer to any intervening role that enables communication or exchange. Understanding the word helps distinguish the activity of bringing parties together from the intermediary person or institution carrying out that activity.
nounThe act of acting between two or more people or parties in order to resolve a dispute, facilitate communication, or arrange a transaction. In economics, it refers to the process of bringing savers and borrowers or buyers and sellers together through an intermediary.
- The act of intervening between parties to facilitate communication, negotiation, or the resolution of a dispute.
- In economics, the process by which funds, goods, or services are channeled between participants through financial or other intermediaries.
"The ambassador's intermediation helped the two governments reach an agreement."
"The neutral organization's intermediation allowed the opposing negotiators to speak openly."
"Financial intermediation connects households with surplus savings to businesses seeking investment capital."
The plural is grammatically correct but uncommon in ordinary usage.
"The report described several forms of financial intermediation across the region."
Intermediation is the quiet force that turns disagreement into agreement—and savings into loans.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does intermediation come from?
Intermediation comes from Latin inter, meaning “between,” and mediātio, a noun derived from mediāre, “to be in the middle” or “to intervene.” The English word developed in the 16th century in the sense of an intervention or agency between parties. Its relatives include mediation, mediator, intermediary, and intermediate, all associated with the idea of something being placed between other things or people.
How intermediation is actually used
The word is formal and especially common in diplomacy, law, and economics. In everyday discussion, mediation is often the more natural choice for a dispute-resolution process.
Easily confused with intermediation
Intermediation is the broader process of acting between parties, whereas mediation more specifically implies helping them negotiate or settle a dispute.
Intermediation names the process, while an intermediary is the person or institution that performs it.