The Changing Face Of Loyalty Programs: A flurry of new breeds of loyalty schemes is bringing varied brands together through coalitions that multiply rewards, lower risk and spread cost. Financial firms are profiting.

Loyalty coalitions, which target a demographic or affinity group- like moms or Scottish-Americans-are proving successful for financial firms. Designed to tap consumers' emotions, they're often associated with a lifestyle or life stage.

Loyalty coalitions allow multiple merchants and brands to participate in rewards programs, spreading marketing costs while extending reach. Examples include ClubMom, which launched nationally this Mother's Day, Tartan Thistle Privilege, which appeals to people of Scottish decent, and Upromise, aimed at those saving for a child's college education.

As merchants of all kinds sign up, Citigroup, NetBank and Wachovia are taking …