US BFS must revamp talent and delivery models to navigate H-1B disruptions

Talent arbitrage just got hit with a $100,000 tax. New H-1B fees, stricter rules, and heavier compliance threaten to dismantle a decades-old model that banking and financial services (BFS) firms relied on. What was once a predictable pipeline of highly skilled offshore talent into the US is now a costly, risk-laden, and compliance-intensive exercise. Leaders in this space must move away from relying on imported tech and analytical skills to drive transformation, manage risk, support regulatory change, and reimagine how their talent supply chain works.

BFS faces immediate disruption as talent pipelines snap

BFS has been one of the largest absorbers of H-1B talent, particularly in quantitative modeling, data engineering, cybersecurity, and digital transformation programs. USCIS data shows that the industry accounted for ~32,000 H-1B petition approvals in both FY2023 and FY2024, which is about 8% of all US approvals. Of these, 8,095 were new hires in FY2024, up 55% from 5,213 in FY2023, indicating a heavy reliance on overseas talent. However, the actual numbers are higher as thousands are staffed through systems integrators. Moreover, critical skills in quantitative modeling, cybersecurity, digital transformation, and data engineering are disproportionately reliant on international pipelines. Taken together, these factors reveal that the industry is more dependent on this pipeline than it admits.

Service providers will feel this strain first, but the risk flows straight to BFS leaders. Delays, compliance flags, and cost pass-throughs will land in their transformation budget. The sector, already under heightened regulatory scrutiny, must now add immigration compliance to its operational risk matrix. Also, site visits and tighter oversight raise the likelihood of project delays and disruptions if filings are challenged.

Tapping into US talent won’t be the safety net. Regional players and FinTechs will compete directly with Wall Street and tech giants for the same limited pool of skills, driving up wages and extending the hiring cycles. The largest BFS firms will likely absorb this shock more easily thanks to their ability to manage multiple transformations and diverse delivery and operating models. These firms spent years building global capability centers (GCCs) and nearshore hubs, bringing in talent on visas to serve as specialized consultants or high-value experts—roles they can pay a premium for without breaking their models.

On the other hand, mid-tier banks will feel the squeeze. They aspire to reach the same level of digital readiness and customer experience as their global peers but with lower spending power. Already struggling to compete for scarce skills, they now face service providers that will naturally prioritize higher-margin engagements. The tailored solutions that mid-tier firms were beginning to access will likely stall as providers reassess whether it is worth shifting talent or setting up closer to regional markets.

Survival now depends on talent, tech, and sourcing reinvention

The potential impact on the BFS sector will require a multi-level strategy that rebalances the workforce, global delivery networks, and technology investments. A $100,000 visa fee multiplied across hundreds of hires will force CFOs to reassess the ROI of H-1B dependence. Strategic rebalancing of delivery through offshore GCCs, especially in India, Poland, and the Philippines, will likely absorb more work, with fewer rotational staff deployed onshore. Firms must use this shock as a catalyst to double down on automation, AI, and digital labor, reducing reliance on human talent that is expensive, mobility-restricted, and politically vulnerable.

The winners will be firms with deep GCC networks, a brand pull to absorb costs, and AI-first operating models. The losers will be regional banks, insurers, and FinTechs without offshore leverage. BFS firms that are slow to modernize their talent strategy and still treat H-1B as the default pipeline will have to absorb the additional costs and compliance burdens.

The Bottom Line: The new visa regime isn’t a passing storm but signals a permanent reset.

BFS leaders must recalibrate their talent, tech, and sourcing strategies before they are priced out of transformation. This requires a strategic reset on three fronts:

• Talent: Invest in domestic university partnerships, reskilling, and alternative visa categories.
• Technology: Accelerate automation and AI adoption to substitute where human scarcity bites.
• Sourcing: Double down on GCCs and nearshore/offshore delivery while rethinking third-party provider dependencies.

H-1B was the bridge that supported BFS transformation. That bridge now comes with a toll so high that only those that rebuild their routes will keep moving forward. The winners will be those that see this disruption not as a barrier but as an inflection point for a more balanced, resilient, and technology-enabled operating model.