Financial intermediation is the process of connecting lenders and borrowers in order to facilitate the exchange of funds. It is a key component of the financial system, allowing for the efficient allocation of resources and providing a variety of services, such as credit risk management, liquidity management, and portfolio diversification.
From Wikipedia
A financial intermediary is an institution or individual that serves as a middleman between two or more parties, typically a lender and borrower, in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, insurance and pension funds, pooled investment funds, leasing companies, and stock exchanges.