SHANGHAI—When Citigroup Inc. started taking deposits from Chinese families in April 2007, the bank observed with gongs and television teams placed at its teller windows. It ’s a landmark indicated annually in red ink.

Citi has lost almost $350 million since 2009 attempting to serve consumers that are Chinese, according to amounts in its Chinese unit’s small-seen yearly filings. The bank’s businesses in the state are lucrative complete, trading and thanks to its company serving foreign firms. But its trouble getting traction in fundamental consumer banking demonstrates how difficult it can be to use the once-heralded opening of what’s become the world’s second-biggest market.

Nearly a decade after World Trade Organization rules gave a foothold in China’s monetary sector to foreign banks, they hold just about 2% of the state’s entire banking assets, based on government figures. HSBC Holdings PLC is posting losses in private banking, although gains on retail banking with more wealthy customers. It has been given much of a try by few other international banks aside from Citi.

The long road to profitability is additional signs of Chinese regulatory barriers that have handicapped foreign competitions in a variety of sectors. But in addition, it represents only commercial problems—beginning with competition from local competitors that are powerful offering wealth-management banking and services via cells—that could prove even more difficult to beat.

Stephen Harner, an American adviser who has held senior positions at Chinese and foreign banks, says international banks overrated their attractiveness to people.

Bankers say time is taken by China.

The bank points to improvement, including a tripling of consumer deposits and loans and rapid increase in customers.

Yet in private, top Citi executives are concerned the settlement is taking more than anticipated, individuals comfortable with the issue say.

Beijing impeded the inflow by restricting growth to two new cities annually, establishing capitalization requirements for each division, and blocking acquisitions of local lenders.

The bank declined to supply figures about its card company in China.

Local contest may be an issue that is larger. China’s state-owned banks are demanding to dislodge and have thousands of divisions. Consumers looking for something different are turning to new technology firms in large numbers like Ant Financial Services Group offering payment, banking and investment services avoiding conventional gain drivers. Analysts at Citi itself lately said fiscal-technology firms in China have around as numerous customers as the state’s large banks. About last year, Ken Chen, a 30-year old Shanghai attorney, signed up to an offer for a Citibank credit card in response. But he did it is held by n’t .

Executives say presents new complications, that tendency toward on-line deposits, including a slowing Chinese market, but not enough to abandon hope.

HSBC, which focuses on connections shows signs of gaining traction. It’s the largest footprint among international banks in China. However, mainland China accounted for worldwide sales is ’sed by just about 4% of the bank a year ago.

Standard Chartered says its franchise in China is placed to “gain the large chances” around China’s yuan, which will be prepared for a international function.

Citi is reconsidering its consumer company worldwide. Retail banking has been fully left by it in 20 states, including Japan. But it’s sticking with China, where there have been inauspicious hints since the consumer start back in 2007.

Within an effort Citi slashed its deposit minimums in 2012 by a third, extending from its strategy of targeting just the most wealthy Chinese. It’s working to appeal or by by linking into Chinese networks including WeChat that manage cell phone, payments that are mobile.

But it’s been five years since the bank enlarged into a Chinese city that is new. In recent months, it’s shut branches in Beijing, Shanghai, Shenzhen and Dalian. China didn’t figure for consumer banking sales in 2015 among Citigroup’s top 10 Asian markets, according to its annual report.

Mr. Selvakesari, Citi’s consumer banking leader in Asia, says there’s still a target group of affluent Chinese that will increasingly want Citi’s guidance and service.

“That’s the section which requires expertise, needs support and needs looking for guidance and diversification,” Mr. Selvakesari says. “ once they get more expertise The consumers will make a selection.”