Managing cash flows for organizational sustainability: evidence from microfinance organizations

Abstract

Introduction. The growth of Ukraine's non-banking financial sector, strengthening of NBU regulatory requirements, and complete digitalization of operations create a need for adapted tools for assessing the efficiency of cash flow management in microfinance institutions. The specifics of short-term lending (7-30 days), ultra-high portfolio turnover (12-50 times per year), and short cash cycle (7-15 days) distinguish MFIs from banks and traditional enterprises, necessitating the development of a specialized system of assessment indicators. Purpose. To develop a system of indicators and methodology for integrated assessment of cash flow management efficiency in microfinance institutions under digitalization conditions. Materials and methods. The information base includes financial statements of MFI "MyCredit" for 2023-2024, NBU data on the non-banking sector, and international research by CGAP and MIX Market. The study employs a systematic approach, comparative analysis, coefficient analysis, economic-mathematical modeling, case study method, and expert assessments. Results. A comprehensive system of 13 indicators in 5 groups (liquidity, turnover, efficiency, stability, digitalization) with adapted standards for MFIs has been developed. Weight coefficients were established: turnover - 30%, efficiency and liquidity - 25% each, stability - 15%, digitalization - 5%. An integrated assessment methodology with a four-level interpretation scale has been proposed. Testing on MFI "MyCredit" data showed an increase in the integral indicator from 0.73 (sufficient level) to 0.81 (high level). It has been proven that digitalization provides acceleration of loan disbursement by 100-200 times, reduction of the cash cycle by 30-40%, improvement of collection efficiency by 40%, and reduction of operating costs by 15%. Conclusions. The developed system of indicators takes into account the specifics of short-term lending by MFIs and can be applied by other organizations in the sector with adaptation of standards. Critical indicators are portfolio liquidity, cash turnover, and collection speed. Digitalization is a key driver for improving cash flow management efficiency. Prospects. Development of predictive models based on machine learning, research on the impact of macroeconomic shocks, comparative analysis of different segments of the non-banking sector, automation of the assessment system through integration with accounting systems.