Finch said he was honoured and excited to be take on such a big responsibility.
"Having the honour to captain your country in any form of the game is something that all young cricketers dream about. It came as a big surprise but it was a very nice phone call to receive from Rod Marsh," said Finch.
"I never imagined when captaining in the past that it would lead to national responsibilities. I've just set out to be the best player that I can and luckily an opportunity like this has come my way.
"It goes without saying that I will do my utmost in this role as we lead into the ICC World T20 in about eighteen months' time. It's going to be very exciting," added the opening batsman, who averages 41.25 with a strike rate of 156 in 18 matches for Australia.
Finch, made his T20 international debut in 2011, will replace Bailey who has chosen to stand down from the role to concentrate on his preparation for the 2015 ICC Cricket World Cup and first-class cricket.
"He has gained quality leadership experience through his role as captain of the Melbourne Renegades and the Pune Warriors. He also captained Australia A against the England Lions last year and excelled when given that chance.
"When George indicated that he was stepping down from the position, we thought Aaron was the obvious choice to succeed him. We know he will relish the opportunity to lead his country," he said.
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