Ashesi Institutional Repository

Designing a strategic investment framework for BanqMoni Limited

Show simple item record Asante, Mercy 2019-01-24T10:34:20Z 2019-01-24T10:34:20Z 2018-04
dc.description Applied project submitted to the Department of Business Administration, Ashesi University, in partial fulfillment of Bachelor of Science degree in Business Administration, April 2018 en_US
dc.description.abstract BanqMoni Limited is a financial technology service provider that started operations in August 2017 with a mission to making banking convenient for Ghanaians. This mission is achieved through its platform that allows individuals to directly make instant deposits into any bank account within Ghana at any time from their mobile money account. The firm has a reliable source of funding from shareholders that ensure that cash outflows for the year are budgeted and catered for. Owing to this, revenue earned through the platform sits in a zero-interest current account with the firm’s settlement bank unproductive. Thus, BanqMoni is unable to deploy its surplus cash efficiently. According to the CEO, this problem tends to erode the firm's future earnings as the bank continues to deduct bank charges. Insights from literature reviewed affirms that there is a tradeoff between profitability and liquidity. Maintaining unproductive surplus cash has an implicit cost in the form of losing out on possible investment income. Hence, it is essential for firms to hold an optimum level of cash to avoid the adverse effects of keeping excess cash or low cash levels. Based on in-depth research, cash management and investment analysis framework that replicates the Miller-Orr cash management model was designed in Microsoft Excel to ascertain the firm’s optimal cash as well as how much funds to invest and returns to expect from the investment. An investment policy was also documented to enable the firm to make prudent investment decisions. Through this framework, the firm will be able to maximize its surplus cash and earn additional investment income that will improve the overall profitability of the firm. en_US
dc.description.sponsorship Ashesi University en_US
dc.language.iso en_US en_US
dc.subject cash management en_US
dc.subject Ghana en_US
dc.subject mobile money en_US
dc.subject FinTech industry en_US
dc.subject investment en_US
dc.subject BanqMoni
dc.title Designing a strategic investment framework for BanqMoni Limited en_US
dc.type Applied project en_US

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