What is primarily linked with the concept of 'households' in nCino?

The concept of 'households' in nCino primarily relates to exposure calculations. This approach recognizes that financial relationships can often encompass multiple accounts or loans held by individuals related through familial or household ties. By viewing these connections, institutions are better equipped to assess the overall risk and exposure to that household, rather than treating each account or loan in isolation. This holistic view enables more accurate financial analysis and risk management, facilitating better decision-making in areas like lending and credit assessments.

The concept of 'households' allows institutions to aggregate information and financial data related to multiple accounts under a single household, providing insight into the overall financial status and risk profile of that household unit. This can be particularly useful in lending situations, as it aids in understanding the full scope of financial obligations and resources available to the household, thus impacting exposure calculations significantly.