MicroConnect provides financial services through a unique model that combines micro-financing with data analytics to support small businesses, particularly in China.[3] The company utilises information technology to collect and analyse data from a vast network of small businesses. This data helps assess the financial health and growth potential of these businesses, enabling MicroConnect to offer tailored financial products and services that meet their specific needs.[4]
Additionally, MicroConnect has developed a unique financial service in which they package the revenues of small businesses and sell them as financial instruments, known as "Daily Revenue Obligations (DROs)".[3][4] This innovative approach involves securitising the revenue streams of small businesses, such as noodle shops and karaoke bars.[4]
The packaged revenues are then sold to investors on the Micro Connect Macau Financial Assets Exchange (MCEX), the first licensed global exchange for this new asset class.[5] The MCEX platform enables global investors to invest in China's micro and small businesses by purchasing financial instruments backed by daily revenues, indirectly providing capital to these businesses.[5]
