financial intermediary definition economics
Definition of financial intermediaries. A financial intermediary is a financial institution such as bank, building society, insurance company, investment bank or pension fund.A financial intermediary offers a service to help an individual/ firm to save or borrow money.A financial intermediary helps to facilitate the different needs of lenders and borrowers.For example, if you need to borrow Â£1,000 â you could try to find an individual who wants to lend Â£1,000. financial intermediary offers a service to help an individual/ firm to save or borrow money. A financial intermediary helps to facilitate the different needs of lenders and borrowers. For example, if you need to borrow Â£1,000 â you could try to find an individual who wants to lend Â£1,000.