Savers are people who keep money with financial institutions so that they may get them when the need arises and also to gain interest. Borrowers are people who go to financial institutions or any person who lends money so that they can be lent money. Financial intermediaries are institutions that act on behalf of one party either to borrow or lend money to another party.
The relationship between these three persons is that savers give their money to the financial intermediaries who act as the custodian of the money. When a borrower comes to the financial intermediary, he gets the money from which the saver had kept with the intermediary. The benefit of such relationships is that there is low risk involved in that the saver deals with the financial institution directly without engaging with the borrower who might be unreliable. The financial intermediary also gains money by acting as a conduit through which the lender and the saver go to. The benefits to the intermediary are in terms of commissions and charges for services offered.