Looking for financial stocks outside the big 4 banks?

With the financial sector down to start the year, could these stocks provide upside?

Most Australians would be aware of the big 4 banks:

According to InfoChoice, the Big 4 banks command around 70% of the total market share in the country's financial sector.

However, investors might be interested in opportunities elsewhere in the financial sector after a down start to the year.

Let's look at three options.

Cheerful boyfriend showing mobile phone to girlfriend with a coffee mug in dining room.

Image source: Getty Images

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Market Cap: $6.18 billion

Dividend Yield: 5.79%

P/E Ratio: 13.79

Located in Bendigo, Victoria, Bendigo and Adelaide Bank is a regionally focused bank.

The bank offers traditional retail banking services, but also provides unique banking options for agribusiness and rural properties.

Investors may see opportunity for upside in Bendigo and Adelaide Bank shares which are down 15.08% year to date. 

For context, the S&P/ASX 200 Financials (ASX:XFJ) is up 0.05% so far this year. 

Despite its fall this year, brokers are not convinced there will be a bounce back.

Bell Potter currently has a Target Price of $10.70, suggesting it's currently slightly overpriced at $11.09 a share. Earlier this month the broker also listed the stock as a "sell".

Similarly, TradingView has a 12 month target price of $10.68 per share, and brokerage platform SelfWealth has an average price target of $10.85. 

Earlier this month Macquarie also released a report on Australian bank shares that included a $10.00 price target for Bendigo and Adelaide Bank. 

Suncorp Group Ltd (ASX: SUN)

Market Cap: $21.31 billion

Dividend Yield: 5.09%

P/E Ratio: 18.59

Suncorp Group's core business includes insurance like home and motor, and commercial insurance.

​Despite Big 4 bank ANZ's $4.9 billion acquisition of Suncorp Bank last year, Suncorp Group remains an independent, publicly listed company on the ASX.

Following the sale, Suncorp Group has transitioned into a dedicated insurance business, focusing on its general insurance operations across Australia and New Zealand.

It has had a rough year thus far, falling 13.38% in 2025. 

However, this fall could be a buy opportunity according to brokers. At the time of writing, Suncorp Group shares are trading at $19.68 each. 

Bell Potter has a price target of $21.55, which would indicate a 9.5% upside. 

Elsewhere, online broker SelfWealth has an average target price of $21.34 and Trading View has an upside of $21.49. 

Cuscal Ltd (ASX: CCL)

Market Cap: $476.99 million

P/E Ratio: 13.89

Cuscal Limited provides payments and data to Australian Banks, credit unions, mutual savings banks, corporates and Fintechs.

It was listed at an initial public offering (IPO) last November, and amidst a turbulent year on the ASX, Cuscal shares have risen by more than 6%. 

Brokers are tipping plenty of growth over the next 12 months for this financial stock, with Bell Potter placing a "buy" recommendation and target price of $3.40.

At the time of writing, CCL shares are trading at $2.49 each, which would mean a 36.55% upside. 

Elsewhere, SelfWealth brokerage platform has an average price target of $3.44 and Trading View has a 12 month price target of $3.51. 

Motley Fool contributor Aaron Bell has positions in National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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