Costs of Intermediation
Categories: Company Management, Banking
Ain’t nothing in life for free, and that includes intermediaries.
When you use a financial intermediary to do some financial business with a bank, an insurance company, or a brokerage firm, they’re doing what they do because they get paid. Sorry, it's not out of the goodness of their hearts.
That’s the cost of intermediation: the cost involved when you use an financial intermediary to do some finance magic (or boring paperwork) with your money.