Why has an increasing share of household savings been channelled through financial intermediaries?

An increasing share of household savings has been channeled through financial intermediaries due to their ability to provide diversified investment options, professional management, and risk mitigation. These intermediaries, such as banks, mutual funds, and pension funds, offer households greater access to financial markets and instruments that they may not navigate independently. Additionally, the pursuit of higher returns in a low-interest-rate environment has driven households to seek the expertise of intermediaries to optimize their investment strategies. This trend reflects a growing reliance on financial institutions to enhance savings growth and manage risks effectively.