Finch scored 156 runs in just 63 balls to smash the previous record which was held by New Zealand's Brendon McCullum who scored 123 against Bangladesh in September of last year.
Finch hit 14 sixes (another record) and 11 fours in his scintillating innings as Australia posted 248-6.
His century was also the second fastest in international Twenty20 play coming off 47 balls.
That was just two off the record that's held by South African's Richard Levi who scored a century against New Zealand in 2012 off 45 balls.
Finch had been looking good for that record after scoring 91 off 36 but tightened up as the century got closer.
England produced 209-6 in their innings with Joe Root scoring an impressive 90.
However, the damage was done by Finch as Australia won the opening Twenty20 match of the series.