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This research paper explores the impact of artificial intelligence (AI) and financial technology (Fintech) applications on the banking and financial services industry. This study comprises a survey that aims to explore how technology and financial advancements are employed in the BFSI sector, specifically examining their influence on financial decision-making and transaction procedures. It also endeavors to recognize any possible challenges and restrictions linked to these advancements. Through this research, we aim to better understand the growth of technology-based financial solutions in India and the challenges encountered when incorporating technology into activities. For the research methodology, we collected secondary data from peer-reviewed papers published between 2016 and 2023 and statistical data from reputable sources such as Statista. The authors analyzed the data to provide accurate information on using AI and Fintech in the BFSI sector. The research has unveiled that the BFSI sector is experiencing a significant evolution marked by improved efficiency, accuracy, and speed in financial operations. This transformation involves the use of technology for tasks like identifying fraudulent activities, enhancing customer service, and managing risks, while innovative financial technologies empower banks and insurance companies to introduce new and customer-focused products and services. However, this analysis also sheds light on specific concerns arising from the broader integration of advanced technology within the BFSI industry. These concerns include issues related to data privacy and security, potential job displacement due to automation, and the necessity for regulatory frameworks to keep pace with technological advancements. In summary, this research paper delves into both the exciting possibilities and potential challenges introduced by advanced technology in the BFSI sector. As we navigate this rapidly evolving landscape, it remains crucial to remain vigilant and proactive in addressing challenges while harnessing the vast opportunities offered by these transformative technologies. This paper works as an informative guide to the use of AI and Fintech Driven Models in the BFSI. For those companies wishing to invest in this sector or for those financial institutions and non-banking financial institutions that wish to shift from a more traditional model to a Fintech-driven model, this paper serves as a guide that shares the current trends of Fintech-driven models in the BFSI sector. [ABSTRACT FROM AUTHOR]