ANALYSIS - Financial firms to feel outsized impact from Trump's H-1B overhaul

Financial firms are among the largest users of H-1B visas, employment-based visas awarded by an annual lottery, although their usage is dwarfed by tech companies. In 2025, the 10 top U.S. financial firms received about 12,000 H-1B visas, according to government data, with JPM the biggest by far with 2,440.

One analyst said it will be harder for banks than for tech companies to bear the increased cost.

"Banks may have the highest hurdle to overcome with the new H-1B visas, as many tech firms report record profitability, making them more insulated to this one-time cost," said David Wagner, head of equities at Aptus Capital Advisors LLC, which owns stakes in major U.S. banks.

TECH PROFITS CUSHION H-1B FEE IMPACT

A large number of the H-1B holders filled engineering and technology roles and are involved in essential activities for banking and the finance industry, according to commentary by Prospect Rock Partners, a financial search firm, which highlights investment banking as specifically impacted. These employees develop quantitative models, algorithmic trading, risk management and software, according to Prospect Rock.

The $100,000 fee for new H-1B visas will effectively make hiring entry-level junior analysts or tech workers prohibitively expensive, said Meridith Dennes, managing partner at Prospect Rock Partners.

"Hiring for entry-level jobs using H-1B becomes nearly impossible," said Dennes.

The new fee may force banks to hire more offshore workers if the skills needed are difficult to find in the U.S., said Tim O’Brien, managing director, North American Financial Institution Ratings at Morningstar DBRS.

"One interesting unintended consequence may be that certain global experts may end up in jurisdictions outside the U.S., such as Canada," said O’Brien. "Some banks may also move certain tech functions offshore."

JPMorgan CEO Jamie Dimon said in interviews with Indian media that the bank will discuss the issue with policymakers and that Trump's announcement "caught everyone off guard".

JPM declined to comment beyond Dimon's remarks. Wall Street's other major banks, as well as credit card companies and consultancies that use H-1Bs, declined comment or didn't respond to requests for comment.

The Trump proposal to rework the H-1B visa is aimed at favoring higher-skilled and better-paid workers, as officials say the visa allows companies to suppress wages, and curbing it opens more jobs for U.S. tech workers.

COMPANIES EXPLORE VISA ALTERNATIVES

A partner at a Big Four audit and consultancy firm who provides M&A advice to corporate clients, said professional services firms will have to assess the percentage of employees using the various visa programs, and how to replace them after their visas expire. That partner, who asked for anonymity due to the sensitivity of the issue, said his firm will certainly see implications for its own business and future hiring plans, especially as it relates to the company’s cost basis for junior employees often hired out of college.

Average salaries for these H-1B employees show that the new US$100,000 fee would sharply increase the cost of hiring them. At JPMorgan, the 2,440 employees with H-1B visas issued this year earn on average US$160,567, according to government data. At Goldman Sachs, the average compensation of recently approved H-1B visa holders is US$126,495 and at Deloitte it is US$139,704.

The visas are usually good for three to six years and the US$100,000 fee would be a one-time charge and would not apply to renewals, the administration has said.

Other alternatives would be to use different visa categories and accelerate green card sponsorship, said Dennes.

"Employers will need to assess the cost and impact on their U.S. talent pipelines, consider alternative visa options and workforce strategies," said Bo Cooper, partner at Fragomen, an immigration consultancy, which advises companies and banks.