Banking sector is an essential part of world economy. However, banks face challenges, particularly due to evolving cyber threats such as ransomware, malware, phishing, insider threats, and Advanced Persistent Threats (APTs). Hackers exploit loop-holes in digital platforms for financial fraud and data breaches, posing significant threat to banking security. This review assesses risks and vulnerabilities encountered by banks, highlighting various cyber threats associated with banking sectors and the importance of cybersecurity measures in protecting consumer data and financial transactions. The banking sector needs continuous adaptation of innovative cybersecurity practices along with a precise risk management approach to defend the evolving cyber threats. The role of Artificial Intelligence (AI) and big data analytics in combating these threats and providing cybersecurity is also discussed, with solutions like Intrusion Detection System (IDS) for a protected and stabilized financial systems globally. It can be suggested that ongoing monitoring, stringent authentication procedures, and robust encryption models are essential to reduce cyber threats to maintain customer trust. This review will help future researchers in seeking advanced cybersecurity solutions for banking system.