Revolut Expands Points System Linking Risky Behavior to Bonuses

Revolut has expanded its internal 'Karma' system, a proprietary points-based tool that tracks employees’ adherence to risk and compliance rules, directly influencing staff bonuses. Karma operates at a department level, promoting collective responsibility by aggregating points that can multiply or dock individuals' bonuses based on their team's performance. The system, introduced in 2020 and recently broadened to cover over 30 compliance processes, aims to build a stronger risk and compliance culture following previous regulatory and reputational challenges. While Revolut cites a 25% improvement in company-wide compliance metrics since Karma’s inception, some HR experts caution that overemphasis on compliance may stifle creativity and that strong leadership, not just technology, is essential for performance management. Revolut's annual report also highlights significant profit growth, attributed to increased subscriptions and revenues from wealth and cryptocurrency trading, as the company continues efforts to improve its culture and regulatory standing. The total bonus pool was not disclosed, but the company asserts that Karma serves as both a feedback mechanism and a strategic oversight engine for compliance behaviors.