And which I frankly did not expect would be a big hit, but has been used rather aggressively. And that number has increased from, let’s say, roughly 10, roughly 1,000 basis points over the last year, so 10%. And, we’re going to try and drive it farther and faster. And the keys to doing that in our view are, one, is to continue to use the technology for what it’s great at, which is improving the quality of the dialogue. And the main way we do that is by continuing to train the technology on actual experiences backed with our VOC data as well as with all of the data in our existing systems. The second way that we expand this is by, as I suggested a moment ago, expanding beyond, the chat format. So, we are we actually just went live in the last couple of days here with, our, sort of first iteration, of work on the voice side.
I wish, I could explain the details of it, but I can’t. I do know that, it’s using a wonderful product from our partner Google and who’s a customer of ours and also a great partner on this work and that it leverages our existing cloud infrastructure. But so we think this number can continue to grow and the results in our view can be three things. One is obviously lower cost, but the second is not only a better experience for our members and clients, but actually a better experience for our agents who the agents that are part of this, ultimately, while it obviously reduces the total number, the agents who are there can be better paid and really use their skills. And then lastly, looked at from the perspective of our partner ecosystem, I think we mentioned this on the call at Investor Day, there are opportunities for both customization and personalization of messaging with items that are of interest to our partners.
And that can be as simple as branding, but sometimes, but I think more importantly, you can get to areas like doing more personalization of what you’re talking about than any human could ever do. And so, I feel great about the fact that we kind of stepped out on this a little bit before there was a buzzword called AI or truthfully or generative AI at least or at least before I even knew it was generative AI. But, we’re in a great spot and we’re leveraging our partners at Microsoft on the infrastructure side and then obviously with this new bit on the application side of Google and doing some really neat stuff.
Operator: The next question comes from Glen Santangelo with Jefferies.
Glen Santangelo : Listen, obviously, a lot of good news to talk about on the custodial revenue side, but I was hoping we could maybe dig in a little bit to the service and interchange revenues. With service revenues being down a little bit relative to the account growth that you had last year, I’m kind of curious if you could talk about the pricing environment in terms of what you saw, this selling season. Then on the interchange side, I don’t know if there’s anything related to change health care and that issue that may have impacted the quarter? And I’ll stop there.
Jon Kessler: Jim, why don’t you hit the first part of Glen’s question and I’ll hit the second part.
James Lucania: Yes. So on the service side, what you’re seeing is a couple of things. So yes, certainly, the market competition remains the same, right? Nothing has changed there. So we face competition on large market RFPs, and we’re going to continue to face a little bit of pricing headwinds on a per product average revenue per user on the service line. The other piece you’re seeing is the end of the national emergency that like I mentioned in my comments. So you think of that as an FSA account that we have with a member that’s open for several years, because of the extension. You might have a 23, a 22 and a 21 and a 20-year open. We count that as one account, but we’re getting revenue for each of those years. So with all of those national emergency items coming to an end in Q4, you don’t see the accounts go away, but the revenue per account does go away in that case.
And then the last piece is just mix shift, right? HSA is a low service fee product relative to CDBs. So as we continue to grow HSAs faster than CDBs, we will see blended average revenue per total accounts come down. So you have sort of a multiple headwind there on price. Aside from all of the pricing impacts, service revenue does grow with accounts. So acknowledge that that’s a little more challenging to forecast. But that’s, we think of sort of service and interchange together as our service revenue streams. They do grow with accounts. The piece we call service has that little extra headwind of pricing pressure and mix shift.
Jon Kessler: Yes. And I was with regard to the question on change, which I prefer to call optimum for reasons that should be obvious. But nonetheless, we’ll use change here. We have not seen any on the revenue side, interchange flow side, we have not seen any impact in the Q1 thus far. We certainly took a look at particularly the last couple of days of February when this kind of started out. And so far, I think so good on that front. And but in addition, I will say that since a lot of the kind of public discourse and appropriately so here has been about the speed with which providers are getting paid and pharmacies are getting paid and therefore, be able to give people access to medications and medical services. We have not had any disruption in the payments that we issue.
