Financial Technology (Fintech) is currently an area of deep and continuous disruptions enabled by the rise of technological advancements notably from the telecommunications and information technology domains. Financial institutions are taking advantage of improving their offerings. Thus, as customers, we can see daily new services, enhanced platforms, customized procedures, among others. Artificial Intelligence (AI) and Machine Learning (ML) are the main enablers of Fintech reshape by revamping banking and insurance services. In this paper, we present the current and new abilities offered by AI and ML to financial institutions. We will mainly highlight the business applications that have been areas of deep improvement using AI and ML models and techniques like credit risk analysis, fraud detection, and smart algorithmic trading. While developing innovative AI/ML based models to address financial problems, it is important to overcome a multitude of challenges including data privacy, data accessibility, security, and the shortage of skilled AI/ML professionals.