<![CDATA[Customer retention has become one of the most important strategic objectives in the banking industry due to the increasingly competitive financial market and the rapid development of digital banking services. Banks are required not only to attract new customers but also to maintain long-term relationships with existing customers through high-quality services that generate satisfaction and loyalty. This study aims to examine the effect of service quality on customer retention with customer satisfaction serving as a mediating variable at BRI Kromengan Unit, Malang Regency, Indonesia. A quantitative explanatory research design was employed using a survey method. Primary data were collected from 300 BRI customers through structured questionnaires measured using a five-point Likert scale. The collected data were analyzed using validity and reliability tests, classical assumption tests, multiple linear regression analysis, coefficient of determination (R²), hypothesis testing (t-test and F-test), and Sobel mediation analysis. The empirical findings indicate that service quality has a positive and significant effect on customer satisfaction. Service quality also has a direct positive effect on customer retention. Furthermore, customer satisfaction significantly influences customer retention and partially mediates the relationship between service quality and customer retention. These findings suggest that improving service quality enhances customer satisfaction, which subsequently strengthens customer retention. The study contributes to the development of relationship marketing literature by confirming the mediating role of customer satisfaction in the Indonesian banking sector. Practically, the findings provide valuable managerial implications for Bank Rakyat Indonesia in developing customer-oriented service strategies to improve long-term customer relationships and organizational competitiveness.]]>
