Revolut, Europe’s most valuable fintech firm, is boosting employee performance with its innovative Karma system, a point-based incentive that rewards good behavior and corrects bad behavior.
Boosting Employee Performance with a Points-Based System
Revolut, one of Europe‘s most valuable fintech firms, has been tracking staff behavior using an internal ‘Karma‘ system that rewards and corrects behaviors. The company’s risk- and compliance-tracking system is designed to improve its working culture and bolster its reputation.
Revolut is a digital banking platform that offers borderless accounts, real-time exchange rates, and fee-free currency transactions.
Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut has gained popularity worldwide for its user-friendly interface and innovative features.
With over 10 million customers across 30 countries, Revolut provides a secure and convenient way to manage finances, send money, and make payments online.
How the Karma System Works
The Karma system assigns points to employees based on their adherence to risk and compliance rules. These points are then aggregated at a team level, with the collective score used to either dock or multiply individual employees’ final bonuses. The system serves as a feedback loop that rewards good behavior and corrects bad behavior.
A karma system is a concept used in various contexts, including online communities and Eastern spiritual traditions.
In its simplest form, it refers to the idea that an individual's actions have consequences, either positive or negative, which affect their overall well-being or reputation.
Online platforms often implement karma systems as a way to encourage good behavior, such as upvoting helpful comments or downvoting spam.
This approach aims to create a self-regulating community where members feel motivated to contribute positively.
A Shift in Focus
Revolut’s decision to implement the Karma system comes as the company tries to address its once-tarnished reputation for weak compliance and a toxic work culture. In the years following its launch in 2015, Revolut faced accounting issues, EU regulatory breaches, and reputational concerns, including an over-aggressive work environment.
Improving Working Culture
Revolut has made efforts to improve its working culture since resolving those initial problems. The company has grown significantly, with more than 10,000 staff serving customers in over 36 countries, offering more than 50 products and services. Its workforce includes a range of perks, such as tickets to exclusive events.
Key Performance Indicators
Revolut’s annual report showed that profits had more than doubled last year, jumping 148% to £1bn in 2024. The increase was driven by a rise in subscriptions and revenues from its wealth and crypto trading divisions. The company has also secured a UK banking licence with restrictions and expects to gain full approval this year.
A New Era for Revolut
Revolut’s growth and expansion plans are expected to be boosted by the success of its Karma system. The company is valued at over $45bn, and UK politicians and City bankers are eager to convince Nik Storonsky, co-founder and CEO, that London should host Revolut’s primary listing. As Revolut continues to navigate the fintech landscape, its focus on employee performance and working culture will be crucial in driving its success.
- theguardian.com | Revolut tracking staff behaviour with points based ‘Karma’ bonus system
