This study examines the applications, benefits, challenges, and ethical considerations of artificial intelligence (AI) in the banking and finance sectors. It reviews current AI regulation and governance frameworks to provide insights for stakeholders navigating AI integration. The study identifies key trends and suggests future research directions. Major findings include an overview of AI applications, benefits, challenges, and ethical issues in the banking and finance industries. Recommendations are provided to address these challenges and ethical issues, along with examples of existing regulations and strategies for implementing AI governance frameworks within organizations. The paper highlights innovation, regulation, and ethical issues in relation to AI within the banking and finance sectors. It analyzes previous literature and suggests strategies for AI governance framework implementation and future research directions. The research contributes to policy and offers practical implications for fintech development in a country.This study examines the applications, benefits, challenges, and ethical considerations of artificial intelligence (AI) in the banking and finance sectors. It reviews current AI regulation and governance frameworks to provide insights for stakeholders navigating AI integration. The study identifies key trends and suggests future research directions. Major findings include an overview of AI applications, benefits, challenges, and ethical issues in the banking and finance industries. Recommendations are provided to address these challenges and ethical issues, along with examples of existing regulations and strategies for implementing AI governance frameworks within organizations. The paper highlights innovation, regulation, and ethical issues in relation to AI within the banking and finance sectors. It analyzes previous literature and suggests strategies for AI governance framework implementation and future research directions. The research contributes to policy and offers practical implications for fintech development in a country.