Final answer:
Loan Auto Decision uses a Rules Engine to automate the approval process for loans based on a financial institution's preset criteria(option b).
Step-by-step explanation:
The Loan Auto Decision feature in a financial institution's loan processing system utilizes a Rules Engine to automate the decision-making process for loan approvals(option b).
This engine applies predefined criteria set by the financial institution to determine whether a loan application should be approved, declined, or flagged for manual review. Unlike Credit Memos, which are documents summarizing the credit history of a borrower, or the nCino UI which refers to the user interface aspect of the nCino banking platform, or a Workflow which could involve several manual or automated steps, the Rules Engine specifically handles the logic based on the institution's lending criteria.