Digital transformation has resulted in tremendous changes in the banking area, with FinTech serving as the primary driving force within it. Artificial Intelligence (AI) and Blockchain technology, in particular, are the most innovative technologies in the banking business.Similarly, AI breakthroughs such as Chatbots in commercial banking and Robo-advisors in investment banking have brought banks into the whole virtual environment. This paper main objectives are: to critically evaluate and determine the current application of Artificial Intelligence and Blockchain in the banking industry, discuss the challenges faced by banks in adapting Artificial Intelligence and blockchain technology, and to provide new insights on future banking in the industry in this digital era.This article underlined the widespread usage of Artificial Intelligence robotic systems in banking. Chatbots and Robo-advisors, for example, could increase the productivity of frontline bank staff who are frequently involved in client relationship management, sales, and marketing. Additionally, robo-advisors are an advanced AI technology used in investing and portfolio management. When a decentralised digital ledger technology is utilised for financial transactions, blockchain will expedite digital transformation. Yet, this is the polar opposite of traditional centralised digital banking, and adoption of these technologies is still in its early stages. Collaboration with robots, improving platform performance, and so forth.Employment, performance, security, privacy and trust, cost, ethical and regulatory problems are the most typical challenges. To avoid obstacles, banks should focus on techniques such as collaborating with robots, improving platform performance, and so on. Ultimately, this study discusses the future of the banking business. In the future, banking consumers can experience totally virtual and customer-oriented financial services. In this sense, the integration of all technology as well as collaborative human effort is critical..