The direct financial service is advantageous in terms of efficiency in the achievement of needed services. This can be attributed to the fact that, a company or institution provides goal specific services. For example for a bank or a credit card company, one must be linked directly to the site of a specific company. Through the said system less complication can be met. For that matter, the clientele that can be attracted are those who know the discipline and are sure of what they need and want, and those who are not familiar with complicated online systems. For that matter, the said system of financial services can be considered advantageous to a wide variety of consumers. One disadvantage of the said system though is the danger of putting trust on a single entity as compared to the system with intermediaries which in the said case can be considered more secure (Carlon, Ryan and Weledniger, 2010).
The financial services with intermediaries on the other hand can provide benefit such as the decrease in transaction costs due to the sharing of assets, goods and services of the different groups and companies that comprise one system. This structure also increases security based on the fact that risks that can be encountered are shared by the whole group. A disadvantage that can be cited though is the complex structure that can create certain problems in different transactions and financial services (Carlon, Ryan and Weledniger, 2010).
Australian Government Treasury (1999) Financial Products, Service Provides and Markets – An Integrated Framework [online]. Available from: [Accessed 20 May 2010].
Carlon, M., Ryan, M. and Weledniger, R. (2010) The Five Golden Rules of Online Branding [online]. Available from Dynamic Logic, AdRelevance and 24/7 Media: [Accessed 20 May 2010].