Revolut Ltd. has expanded a system that tracks employees' risky behavior and ultimately determines how much they're paid every year.
The company added six new sources to its Karma system last year, which allows employees to gain or lose points based on their behavior throughout the year, according to the firm's
"This industry-leading scheme, started in 2020, effectively measures and incentivizes good risk practice," Revolut said in a statement. "We have seen companywide Karma performance related to key risk and compliance processes increase by 25% since its inception, showing the success of linking these actions to remuneration."
The Karma system includes more than 30 risk processes, the report shows. In one example, it might be used to track employees' actions after a risk incident: the system would ensure that staffers complete any investigation and partake in remediation in a timely manner.
Revolut does not publicize separate figures for bonuses, but last year the fintech giant paid out 485 million pounds ($644 million) for wages, salaries and bonuses last year. That was up 38% from a year earlier as the company added nearly 2,000 employees.
The expanded system shows Revolut is still laser-focused on shaking off its reputation around
Revolut last year gained its restricted U.K. banking license, which will ultimately allow the company to better challenge traditional banks such as Barclays and HSBC Holdings. During this initial phase, though, the company has sought to prove to regulators that it's successfully beefed up its risk and compliance offerings as it prepares to leave behind the Bank of England's limits on its operations.
"Karma is essential for measuring and incentivizing good risk and compliance outcomes, and its coverage was expanded in 2024 to address our organization's growing complexity," Pierre Decote, group chief risk and compliance officer, said in the annual report. "I am personally confident that the work we have done — and are doing — in this space sets us up for success."
