Revolut has expanded an internal 'Karma' system that tracks how employees follow risk and compliance processes, linking their behaviour to their bonuses.
Launched in 2020, Karama is a proprietary points-based system designed to track risky behaviour among staffers. Employees are marked against a series of processes, gaining and losing points that ultimately affect bonuses.
Last year, the system - which operates at a department level to promote collective responsibility - was expanded and now covers more than 30 risk and compliance processes, says Revolut in its 2024 annual report.
"Karma serves both as a feedback loop that rewards and corrects behaviours, as well as a comprehensive risk and compliance culture oversight engine, which allows us to prioritise key developments in this space," says the report.
Revolut has had issues with risk and compliance over the years. Last summer, it finally secured a UK banking license after a three-year process held up by regulator amid concerns over auditing, compliance and corporate culture issues.
This month, it was fined €3.5 million by the central bank of Lithuania for deficiencies in its anti-money laundering controls.
In its annual report, Revolut reports pre-tax profits of $1.4 billion and net profit at $1 billion. Group revenues rose 72% to $4bn, up from $2.2bn in 2023, driven by strong growth across all revenue streams and a growing user base.