This week, we're looking beyond Canada's Big Six to find value and growth in the small-cap banking sector. We analyze two profitable and growing institutions that are carving out their own successful niches in a competitive industry.

Jon Brown looks at Laurentian Bank (TSX: LB), a nearly 200-year-old institution that is undergoing a major digital transformation to compete in the modern era, all while offering a stable 6% dividend. Then, Trevor Abes dives into VersaBank (TSX: VBNK), a branchless, business-to-business fintech pioneer with an impeccable credit history, which is now expanding into the US and even issuing deposits on the blockchain.

This Episode's Picks:

• Laurentian Bank of Canada (TSX: LB): A legacy Canadian bank in the midst of a digital transformation, offering a stable value and dividend play with the potential upside of a future takeover.


• VersaBank (TSX: VBNK): A highly profitable, branchless digital bank with a unique B2B model, expanding into the multi-trillion dollar US market and innovating with blockchain technology.

Topics Discussed:

• Investing in Canadian small-cap banking stocks.


• The digital transformation of traditional banks.


• Branchless and business-to-business (B2B) banking models.


• The receivables purchase market and point-of-sale financing.


• How blockchain and tokenized assets are entering the banking sector.

Further Reading & Resources:

• Laurentian Bank posts Q3 2025 profit despite revenue drop


• A small-cap bank excelling in the shadow of Canada’s Big Six


• This week’s picks: TSX:LB | TSX:VBNK

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Disclaimer: The material provided in this podcast is for information only and should not be treated as investment advice. For full disclaimer information, please visit themarketonline.ca/disclaimer.