Objective The digital economy has contributed significantly to the productivity, growth and emergence of fintech banking, however critics and controversies in respect of customer protection and exposure to a variety of added risks posing threats of financial and non-financial losses is also being argued. This study aims to examine the relationship between fintech banking and customer risk threshold, identify emerging risks and develop “fintech banking Risk Taxonomy” and propose possible solutions and best practices being used to mitigate these risks internationally. Methodology The “Systematic Literature Review (SLR) being most authentic and verifiable source that “provides a precise mechanism and a stringent review protocol was used to develop the risk taxonomy. To ensure currency, relevance and quality, strict inclusion and exclusion criteria was implied and search was restricted to impact factor journals published giving due consideration to Publisher rating and H Index and excluding research papers containing 0” citations and published before 2015. Findings The study results revealed that the companies and customers avoid e-commerce operations for several reasons, and security is one of the key reasons. Moreover, electronic payment systems are currently facing many difficult hindrances posed by the internet security issues. Customers need more assurance in a digital or fintech bank that their data and privacy will be respected and safeguarded. Practical Implications It is critical to be mindful of the fact that the lack of fintech and digital bank rules may generate substantial uncertainty in the business environment. To provide secure digital banking services to the general public, there must be innovative and secure business processes, prudent and sustainable digital banking business practices, adequate risk management policies and procedures, proper governance and IT capability requirements, and guidelines on consumer data protection and the risk of data leakage.