Revolut’s Internal Tracking System: A New Era of Risk Management
A recent report from _The Guardian_ has shed light on Revolut’s innovative approach to tracking staff behaviour through a points-based bonus system. The UK-based bank, Europe’s most valuable fintech firm, has been using an internal “Karma” system to monitor employee compliance with risk and regulatory rules.
According to _The Guardian_, Revolut’s annual report revealed that the company’s profits more than doubled in 2024, reaching £1bn. This impressive growth was largely attributed to an increase in subscriptions and revenues from its wealth and crypto trading divisions. As _The Guardian_ noted, Revolut’s success can be partly attributed to its efforts in building a “healthy risk and compliance culture” through the Karma system.
The Karma system, launched in 2020, is designed to track employee behaviour and reward or correct actions that align with or deviate from the company’s risk and compliance standards. As stated in Revolut’s annual report, the system allows employees to gain or lose points that ultimately affect their bonuses. These points are aggregated at a team level, and their collective score is used to determine individual bonuses. A Revolut spokesperson told _The Guardian_ that the Karma system “serves as a feedback loop that rewards and corrects behaviours”.
In an effort to bolster its reputation, Revolut has been working to address past concerns regarding weak compliance and a toxic work culture. The fintech company has made significant strides in resolving accounting and regulatory issues, as well as improving its working culture. As _The Guardian_ reported, Revolut’s co-founder, Nik Storonsky, has been working to transform the company’s image.
The Karma system has proven to be effective in driving positive risk and compliance actions within Revolut. According to _The Guardian_, the company has seen a 25% increase in company-wide Karma performance related to key risk and compliance processes since its inception. This success has been linked to the decision to tie Karma performance to remuneration, ultimately building a strong culture of risk management and compliance across the business.
Revolut’s growth has been remarkable, with the company expanding to over 10,000 staff and serving customers in more than 36 countries. The fintech firm offers a wide range of products and services, including money transfers, home rentals, buy-now pay-later credit, and crypto trading. As _The Guardian_ noted, Revolut recently secured a UK banking licence with restrictions and expects to gain full approval from UK regulators this year. This development is expected to pave the way for a bumper stock market flotation, with Revolut last valued at $45bn.
In terms of financial performance, Revolut reported that customer account subscription revenue had leaped by 74% last year to £423m. The company’s wealth division also saw significant growth, with revenues surging by 298% driven by cryptocurrency trading and the launch of its own crypto exchange platform. As quoted in _The Guardian_, a Revolut spokesperson said, “Our proprietary Karma system is focused on driving positive risk and compliance actions at Revolut. This industry-leading scheme, started in 2020, effectively measures and incentivises good risk practice.”
The implementation of the Karma system demonstrates Revolut’s commitment to risk management and compliance. As _The Guardian_ reported, the company’s efforts to improve its working culture and compliance standards have been ongoing. With its UK banking licence and expected full approval from UK regulators, Revolut is poised for significant growth and expansion.
The company’s growth and success have also sparked interest from UK politicians and City bankers, who are eager to convince Storonsky that London should host Revolut’s primary listing. As Revolut continues to expand and evolve, its innovative approach to risk management and employee behaviour will likely remain a key area of focus.
Revolut’s annual report and _The Guardian_’s coverage of the company’s Karma system provide valuable insights into the fintech firm’s approach to risk management and employee behaviour. As the company continues to grow and expand, its commitment to building a strong culture of risk management and compliance will be crucial to its success.
According to a Revolut spokesperson, as quoted by _The Guardian_, “We have seen company-wide Karma performance related to key risk and compliance processes increase by 25% since its inception, showing the success of linking these actions to remuneration, ultimately building a strong culture of risk management and compliance across the business.” This statement highlights the effectiveness of the Karma system in driving positive change within the company.
In conclusion, Revolut’s innovative approach to tracking staff behaviour through a points-based bonus system demonstrates its commitment to risk management and compliance. As _The Guardian_ reported, the company’s efforts to improve its working culture and compliance standards have been ongoing, and its growth and success will likely continue to be shaped by its approach to risk management and employee behaviour.
Source link
