Question: Will Computer Technology Cause Financial Intermediaries to Become Extinct? Point Yes. Financial intermediaries benefit from access to information. As information becomes more accessible, individuals will

Will Computer Technology Cause Financial Intermediaries to Become Extinct?

Point

Yes. Financial intermediaries benefit from access to information. As information becomes more accessible, individuals will have the information they need before investing or borrowing funds. They will not need financial intermediaries to make their decisions.

Counterpoint

No. Individuals rely not only on information but also on expertise. Some financial intermediaries specialize in credit analysis so that they can make wise choices when offering loans. Surplus units will continue to provide funds to financial intermediaries, rather than make direct loans, because they are not capable of credit analysis even if more information about prospective borrowers is available. Some financial intermediaries no longer have physical buildings for customer service, but they still require agents who have the expertise to assess the creditworthiness of prospective borrowers.

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