Financialintermediariesarethoseentitieswith"low-cost"money(banks,creditunions,savings&loanassociations,mutualandpensionfundsandinsurancecompanies)thatactasprovidersofmoney(asloansorinvestments)tothoseneedingfunding.Theyhavedevelopedasophisticatednetworktoallowthemtohavethesefundsavailableanddeliverthemasquicklyandefficientlyaselectronicallypossible. 　　Function 　　Financialintermediariesperformasprovideroffundstothosewhoneedmoney.Frombanks,creditunions,savings&loans,mutualfunds,insurancecompaniesandpensionfunds,financialintermediariesprovidefundsforallmannerofborrowersandinvestors.Whetherit'sabankprovidingapersonalloan,amortgagelenderorfinancialentitiescreatinginvestmentmarkets,financialintermediarieskeeptheflowoffundsmoving. 　　Benefits 　　Individualsandbusinessesoftenneedfundsforworkingcapital,assetpurchases(homes,cars,equipment,buildingsandcomputersystems)andthefinancialintermediarynetworkservesasthesourceofthismoney.Borrowingfromsavers(depositorsinbanksandcreditunions),financialintermediariesprovidemoniesatareasonablecosttothosewhoneedthem.Theirnetwork,afinelytunedmoneymachine,eliminatesmostdifficultiesforthoseneedingfunds. 　　Theories/Speculation 　　Financialintermediariesexercisegreatpowerandcontroloverthecountry'seconomy.Intheory,theirnetworkallowsthecountry'sfinancialtransactionsandmoneymovementtokeepfundsflowing.Atmosttimes,thistheoryisthereality.However,theycanalsoenhancetheeffectsofanegativeeconomybyrefusingtobecomeplayersintheglobalfinancialgame.Whenregional,nationalorglobaleconomicproblemsoccur,financialintermediariessometimeschoosetotightentheirrequirementsoreventosuspendmoneyofferings.Thisactionoftenmakesabadsituationworse. 　　Features 　　Whilealwaysnecessarycomponentstotheeconomy,thesophisticationofcomputersandtheInternethasallowedfinancialintermediariestobecomeevenmoreefficientandimportant.Thoseneedingfundscanoftenbeanywhereintheworldandreceivethemoneytheyneedelectronically.Theriskoftransferringfunds,thetimedelayandtheneedfor"hardcash"haveallbeeneffectivelyeliminated.Thishasallowedfinancialintermediariestoservejustasprofessionallyasbankinginstitutions.Forexample,mutualandpensionfundseffectivelyofferfinancialintermediaryservicestoindividualsandbusinessesatreasonablerates. 　　Considerations 　　Itisimportanttounderstandbothwhatfinancialintermediariesareabletodoandwhattheyarewillingtodoforyou.Havinglargeamountsofmoneyforloanorinvestmentwithoutthedesiretoprovidethesemoniestoothersserveslittlepurposetothoseindividualsandcompaniesneedingfunding.Carefullyconsideryourneedforfundsandthosefinancialintermediariesmostinterestedinprovidingthemoney.