The general objective of this study was to investigate the effect of service quality and customer satisfaction in financial Institutions- a case of Centenary Bank. The specific objectives of the study were: to examine the relationship between staff reliability and customer satisfaction, to examine the relationship between staff responsiveness and customer satisfaction and to establish the relationship between staff empathy and customer satisfaction The study adopted a descriptive and correlation research design. Data was collected from 90 respondents through self-administered questionnaires and analyzed by use of descriptive statistics involving frequencies, mean and standard deviation , further analysis was achieved by use of inferential statistics involving hypothesis testing by use of Pearson‟s correlation Coefficient and regression analysis with the help of (SPSS Version 21.0).The results indicate that staff reliability has a strong positive correlation with service delivery ( r = 0.943 **P < 0.000).; Staff responsiveness has a strong statistically significant positive correlation with service delivery (r = 0.904 **P < 0.000) and similarly staff empathy has a strong statistically positive correlation with service delivery (r= .934 **; P < 0.000) . Regression analysis modal summary indicated that, staff reliability, staff responsiveness and staff empathy, explained up to 93.1% of the variations in customer satisfaction (r2= 0.931). Staff reliability contributed the highest to variation of customer satisfaction (coefficient 0.67), followed by staff responsiveness (coefficient, 0.287 and staff empathy (coefficient, 0.239) The study recommends that Centenary Bank management in Arua should invest in training employees to be more competent, empathetic and reliable. Employees‟ compensation should be based on customer satisfaction levels and the Bank human resource should ensure that they recruit staff that is committed and friendly, ready to share customer‟s feelings and emotions.

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