Artificial Intelligence (AI) made disruptive progress over the last years, becoming a key technology across industries. In particular, AI offers novel distinctive opportunities for intelligent services in fi-nancial technology companies (Financial technologies). However, given the opportunities of AI and its associated benefits, the question arises why financial technologies fail to leverage the full potential of AI. Drawing on existing literature, this paper elaborates on the opportunities and risks associated with AI in the financial sector. This paper makes two key contributions: First, we discover the present challenges in literature to demonstrate the need for explainable AI. Second, we reveal the lack of guidance for applying explainable AI in financial technologies. We derive recommendations for re-search, policy, and practice and argue for the increased elaboration of legal frameworks for the re-sponsible use of AI.