Regulatory technology is a fast-moving space, and the terms can get confusing. “RegTech” and “GRC” (Governance, Risk, and Compliance) are often used interchangeably, but they’re not the same thing. Here’s why the distinction matters.
What is GRC?
GRC solutions are designed to help organisations manage their governance, risk, and compliance processes. Think of GRC as the backbone for:
- Document management
- Policy management
- Risk and controls assessment
- Issue management
- Audit and reporting
The best GRC tools are often sector-agnostic. They can be deployed in manufacturing, healthcare, financial services, and beyond. They’re about enabling good governance and risk management, regardless of industry.
What is RegTech?
RegTech is a step further.
It’s the fusion of deep regulatory expertise and technology, purpose-built to solve specific regulatory challenges, often in highly regulated sectors like financial services.
What sets RegTech apart?
- Embedded regulatory content: The technology is infused with up-to-date, authoritative regulatory logic.
- Plug-and-play compliance: Solutions are designed for rapid deployment, minimal disruption, and immediate results.
- Outcome-focused: RegTech isn’t just about managing compliance, it’s about automating, evidencing, and even predicting it.
Where’s the Overlap?
There’s definitely a blurred line.
A GRC tool can become RegTech when it’s infused with regulatory content—think automated regulatory reporting, transaction monitoring, or real-time rule-checking. But the DNA is different:
- GRC: Broad, process-driven, sector-agnostic.
- RegTech: Deep, content-driven, sector-specific.
Why Does the Difference Matter?
If you’re a financial institution facing complex, fast-changing regulations, you need more than a generic GRC tool. You need RegTech that:
- Interprets and automates the rules
- Stands over the accuracy of every output
- Evolves as regulations change
At Funds-Axis, our solutions are built by regulatory experts, for regulatory experts. We don’t just help you manage compliance, we help you master it.
The Bottom Line
GRC and RegTech both have their place.
But when the stakes are high and the rules are complex, RegTech is the difference between keeping up and staying ahead.
Curious about how RegTech can transform your compliance?
