The banking industry has expanded along with communication and technological advancements, making it one of the most fiercely competitive industries. The survival of the profitability of the companies that provide banking services in these fiercely competitive times rests on building client loyalty and satisfaction through the provision of high-quality financial services. Customer loyalty is one of the most essential business performance indicators, especially in the banking sector, where customers may prefer multiple businesses. This study investigates the relationship between customer satisfaction, perceived service quality, and a business’s capacity to hold onto clients. Additionally, the study contributed to the body of knowledge by investigating whether, in the banking sector, customer satisfaction functions as a mediating factor between perceived service quality and customer loyalty. In this case, the information obtained by measuring participants’ perceived customer satisfaction and service quality to promote more loyalty was analyzed. The research data came from 392 participants who completed in-person and online surveys. The aspects of perceived service quality—physical appearance, eagerness, security, and empathy—were found to positively influence customer satisfaction based on the data gathered. Furthermore, attractiveness, zeal, and empathy positively correlate with consumer loyalty. Additionally, the association between the characteristics of enthusiasm and customer loyalty is fully mediated by customer satisfaction, while the relationship between the dimensions of perceived service quality, physical attractiveness, empathy, and customer loyalty is partially mediated by customer contentment. Together with suggestions for more research, the report discusses its practical applications.