Companies in this modern era have incorporated Artificial intelligence (AI) tools which have significantly enhanced the execution of their services. In the recent past, there has been much research which attempted to study how Artificial intelligence is making inroads in the financial services sector and can human Intelligence be integrated into the banking sector under Industry 5.0 standards. This research attempts to explore the impact of Industry 5.0 and Artificial Intelligence (AI) on the banking and financial services sector which will/has given rise to the “Banking 5.0.” This study uses mixed method approaches to evaluate the impact of AI on several parts of banking. Information through secondary research is obtained from public records, published interviews/articles and company records. Primary information is recorded through primary surveys and interviews. This study has tried to evaluate impact of AI on banking operations by enhancing efficiency, enabling customized services for customers, improving risk management, and enhancing overall customer experiences and expectations. Although innovations such as predictive analytics, next gen chatbots, robo advisors which are becoming more and more common to be used by companies shows promising future, their integration into the current infrastructure poses significant challenges, such as ethical concerns, data privacy concerns and employment replacement. This research explores how new technology, specifically artificial intelligence, has impacted the financial services industry with a focus on transparency, inclusivity and relationship between human and machines. Research has also shown gaps, such as trust in the new system. Insights from this research should help tech experts, policymakers and financial institutions which will help them to move towards a more flexible, resilient and human-AI collaborative banking environment, heralded by Banking 5.0