<P> There are two essential advantages from using financial intermediaries: </P> <Ol> <Li> Cost advantage over direct lending / borrowing </Li> <Li> Market failure protection; The conflicting needs of lenders and borrowers are reconciled, preventing market failure </Li> </Ol> <Li> Cost advantage over direct lending / borrowing </Li> <Li> Market failure protection; The conflicting needs of lenders and borrowers are reconciled, preventing market failure </Li>

Who benefits from the process of financial​ intermediation