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Working at Revolut, the innovative London-based fintech company, means that your performance metrics go beyond mere sales targets. Employees are now evaluated based on a distinct system called 'Karma,' which plays a crucial role in how bonuses are determined. This unique approach emphasizes not just individual achievements but also the collective adherence to risk and compliance regulations across teams.

The Karma system operates by assigning points to various departments based on their compliance with necessary protocols. Each department's performance is assessed on factors such as the completion of mandatory training sessions, timely reporting of compliance issues, and strict adherence to company policies. These Karma points can significantly enhance the bonuses earned by employees within those groups, creating a culture that prioritizes risk management as a shared responsibility.

Details surrounding the Karma program were unveiled in Revolut's recently released annual report. The fintech, known for offering services like current accounts and cryptocurrency trading, has designed the Karma system to reinforce the importance of governance within the company. A spokesperson from Revolut emphasized that the Karma program is not intended to monitor individual staff members but rather to encourage collective accountability. For instance, if a risk incident arises, we utilize the Karma system to ensure that investigations and remedial actions are conducted promptly, the spokesperson explained.

Since its inception in 2020, the Karma system has led to a notable 25% improvement in company-wide compliance performance, according to Revolut. The fintech employs real-time dashboards that monitor departmental compliance levels, and it has integrated 'risk champions' within teams to promote best practices in risk management. Furthermore, the annual report indicated that the system had been bolstered last year by incorporating six new data sources to enhance its effectiveness.

The introduction of Karma is part of Revolut's broader effort to demonstrate its commitment to sound governance, especially following the acquisition of a UK banking license in July 2024. This licensing process was lengthy, spanning three years, and was complicated by previous governance challenges faced by the company.

Revolut's CEO, Nikolay Storonsky, is known for his stringent stance on performance metrics. In a report published by Quantumlight, the venture firm he co-founded, Storonsky advocated for a no-nonsense approach to underperforming staff at tech startups. He suggested that such employees should be given just six weeks to show improvement or be let go, stressing the need for companies to focus resources on nurturing and promoting top talent while swiftly parting ways with those not meeting expectations.

In its annual report, Revolut also highlighted its financial achievements, announcing a pretax profit of 1.1 billion for the year 2024an impressive 149% increase compared to the previous year. The company has grown substantially, boasting over 52 million customers and experiencing a threefold increase in revenue from its cryptocurrency-related Wealth unit. As Revolut continues to diversify its offerings, including entering the mortgage and lending markets, the need for rigorous internal oversight through systems like Karma has never been more critical.