MJAMR

The Effect of Cash Management Practices on the Performance of Micro Finance Institutions. A Case Study of Equity Bank Nakulabye Branch

Mugalanzi Stephen, Omendo Vincent


Abstract

The purpose of the current study was to establish the effect of cash management practices on the performance of micro finance institutions in Uganda while taking a case study of Equity bank in Nakulabye branch. The specific objectives was to establish the various cash management techniques used by equity bank, to determine the Benefits of cash management practices on financial performance, to find out the relationship between cash management and financial performance .the research study employed descriptive research design which enabled the research to come up with relevant information that was required .under this design ,both qualitative and quantitative data collection techniques were employed .the researcher also worked with a sample size of 25 respondents who actively participated in the study .Being on the findings obtained from the study under the data presented in chapter four, it was found that the company has adopted digitalized methods of the managing finance hence this has helped in reducing on the hidden costs more so, the study revealed that proper cash managed by the financial institutions increases on the profit margin realized. From the summary of the findings above, it can be concluded that the application of cash management technique by any financial institution facilitate the smooth operation and the expansion on the organization the role of records keeping makes an organization attain its goal should be effective by having active support for budgeting process from the top management, clear stated daily transactions and forecasting standards. But organization should be carefully in setting the goals for the financial year by making sure that those goals must be achievable in order to avoid wastage of resources. The researcher recommends that the system that has been designed can be installed in equity banks Information Technology System so as to enable Equity Bank achieve its goals, objectives and mission statement. The policy and procedure manuals together with the designed system should strictly be followed if they are to achieve service quality and customer satisfaction as service providers.

Keywords

cash management practices performance and micro finance institutions
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Mugalanzi Stephen & Omendo Vincent (2023). The Effect of Cash Management Practices on the Performance of Micro Finance Institutions. A Case Study of Equity Bank Nakulabye Branch. Metropolitan Journal of Academic Multidisciplinary Research, 2(9). https://journals.miu.ac.ug/pages/article.php?article_id=1581

More in This Issue

View full issue →
36
Material Handling and Profitability of an Organization. A Case Study of Mukwano Group of Companies
Nakasango Aisha, Otim John William, Asiimwe Isaac Kazaara
material handling profitability and organization
37
Micro Finance Services and Development of Small and Medium Businesses. A Case Study of Nansana Municipality
Muganga Rigan, Zikusooka Enock
micro finance services development small and medium businesses
38
Non-Governmental Organisations and Women Empowerment Acase Study of Nansana Municipality Wakiso District
Kulu Ashirafu, Namuyonga Rebecca
non-governmental organisations and women empowerment
39
Relationship Between Mass Media and Consumer Behavioral Changes, a Case of Riham Uganda
Nakayiza Christine, Freeman Chrispus, Kyomuhendo Charlotte
mass media consumer and behavioral changes
40
Sales Promotion and Organisational Performance. A Case Study of Airtel Uganda Limited Headquarters
Nabalayo Judith, Dr Ariyo Gracious Kazaara, Ngiri Andrew
sales promotion and organisational performance