THE STEREOTYPE OF THE FINANCIAL advisor in a pinstriped suit servicing only well-heeled clients dies hard, but believe it or not, banks these days are beating a path to the doors of the not too well off to teach them about financial planning. The result: A growing army of financially savvy Filipinos who now dare to upgrade their dreams to “higher class” like achieving millionaire status and traveling abroad.

The Bank of the Philippine Islands, for one, has for the last few years been quietly preaching financial management to the families of Filipinos working or living overseas in posh hotels, malls and through highly targeted small events.

This has been a major shift in the way banks do business. For years, banks rolled the red carpet only for Filipinos with at least P5 million. But as remittances from those who work abroad sent to their families here ballooned from $6 billion in 2000 to almost $15 billion in 2007, they scramble to get a bigger slice of the pie by giving the value-added service of teaching clients’ beneficiaries how to reach their financial goals.

Sure, the red carpet rolled may not be as long or as thick as when it’s for high net worth individuals. But the additional attention has done wonders for the banks—and remittance receivers. BPI has been the top remitter in the industry for the last five years.

Most of BPI’s financial caravans held once a month are elegant affairs, from the embossed invitations to follow-up calls, to the financial team in smart suits to the posh hotels where these are held. Some of these caravans are held in nearby Quezon City and Cavite (where most of the really rich ones are located, BPI says), but once in Davao, BPI almost took over an entire hotel.

BPI clients who have at least P50,000 in their accounts are taught basic savings and investments techniques that will help them achieve financial empowerment and independence. Mixed with the lectures are ideas on entrepreneurship like franchising and practical tips on how to apply for auto loans for “hakot-tubig, “ (water delivery)” for instance.

Those who have at least P200,000 in their accounts get treated to “Financial 101” courses for a select group of 20 people per course with near personalized attention from bankers and an economist giving a briefing for privileged clients. They also have Vicki Belo-type seminars to address their craving for “the good life” and even a Fun Caravan for the younger generation with “Bingo” games and spruced up financial courses.

“We really try to take care of the overseas Filipino’s beneficiaries. We try to look at their psyche. We understand that the overseas Filipino have already seen the best toilets in the world and had coffee in the best hotels and they want their family here to experience the same thing,” says Teresita B. Tan, senior vice-president and group head for the overseas banking and channel services group.

Tan’s group also holds “Discovery” caravans for beneficiaries who have minimum amounts in their accounts. Held in malls, they bring entertainers and help the attendees learn the rigors of frugality and merchandise substitution.

“It’s really a party where they learn how to manage their money and hear testimonials from others who have made it big. You will be inspired when you hear them talk,” Tan says.

Recognizing their higher standard of living is one of Tan’s premises in approaching overseas Filipinos and their families.

“Some may still be domestic workers, but they are not stay-in and they have their own homes. They know they are doing clean and honest work. From the clothes they wear to the homes they live in, you will see that their value system has expanded and it is just right that they are treated as middle class” Tan says.

Asked how overseas Filipinos and their beneficiaries here can maximize services from banks and get closer to their financial dreams, Tan gave the following advice:

1. Invest in a retirement home. A home is one of the most expensive item any person will buy in his entire lifetime and when the cash comes in, remember that financing for real estate is one of the lowest out there in the market.

2. Save at least 10 percent of your income for your retirement. Regular savings is the foundation of financial planning. Building it slowly but surely is the surest way to retire rich.

3. Open a franchise or small business. This will allow Filipinos working overseas a chance to have an easier time to reintegrate with life here once they come home.

4. Use remittance records to improve your credit score. Remittance records are now considered good indications of credit score or credit history. If the records show that overseas Filipinos can send money home regularly enough to finance a business loan, auto loan or even home loan, beneficiaries and their relatives abroad will have an easier time managing their financial needs.

5. Maximize zero opening balance in bank accounts. Banks normally charge P200 every time bank account balances slide below the minimum balance of P3,000 to P5,000 for most banks, and that can look deceptively cheap. But collectively, it can shave off a substantial amount when withdrawals are made often. However, working hard to increase savings account balances will also improve a depositor’s credit score and qualify him for more services from banks.

6. Look for web services that lower fees and increase interest on deposits. BPI Direct, the bank’s online-only service, offers interest on deposit that are two to three percentage points higher than the usual savings account. It also has a “Save Up” feature to automate savings, and allows overseas Filipinos to pay bills, tuition fees and manage their investments wherever they are.

Tan says the “Save Up” product has been the most successful she has handled so far, with more than 100,000 accounts since its launching in September. The account also insures the owner up to five times of his balance, an attractive benefit for overseas Filipinos, most of whom do not have personal life and accident insurance.

7. Maximize equity build-up loans for first-time homebuyers. For any homebuyer, coughing up the 20 percent to 30 percent equity is not easy at all. Banks that allow buyers to save for the equity allow them to get the property at the price they want while stretching the time to pay up the amount. This build-up period also boosts their credit score.

8. Keep daily consumption the same despite increases in income. When a movement in the peso-dollar exchange rate, for example, squeezes out more pesos from those dollars, Tan advises keeping the budget the same and saving the windfall.

(For more personal finance articles, visit MoneySmarts at http://blogs.inquirer.net/moneysmarts)