We propose FedLoRD, a personalized federated learning (PFL) method based on the low-rank structure of the differences between the global and personalized model parameters. PFL is a branch of federated learning that aims to learn models tailored to the local data of each client under biased local data distributions. In its local training, each client learns a personalized model by regularizing the difference between its model parameters and the global ones sent from the server. The regularization function needs to be designed with priors on the model parameter difference; however, the existing PFL methods rely on empirical choices (e.g., $\ell_1$- and $\ell_2$-norms), which do not take into account the actual characteristics of the difference. The resulting mismatch of priors can lead to suboptimal personalized models. To address this issue, we propose a PFL method whose regularizer is built on an observed characteristic of the model parameter differences: they are approximately low-rank at every layer. In our method, we first formulate a local training problem with nuclear norm regularization on the layer-wise differences. We further rewrite this problem via the factorized representation of the nuclear norm so that it can be efficiently solved by a plain stochastic gradient descent method. Image classification experiments on three benchmark datasets demonstrate that FedLoRD outperforms several existing PFL methods.

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