Digital challenger bank Monzo has hit its £20 million crowdfunding target less than three hours after launching the campaign to its customers.

The FinTech secured almost £2.04 million from its existing investors and today raised £17.96 million from over 36,000 customers in just 2 hours and 45 minutes.

Monzo raised £2.94 million in 60 seconds during the fastest minute of the crowdfunding campaign.

"We're happy that so many of you have been able to get involved and take a stake in the bank that you’re helping us build," the challenger bank wrote in a blog post.

"Our community has played an essential part in making Monzo what it is today, and your support and feedback are becoming even more crucial as we grow."

Luke Lang, co-founder of equity crowdfunding website Crowdcube, said it was "truly awesome" to see Monzo raise £20 million so quickly.

"They understand how crowdfunding can help to put customers at the heart of a business by enabling them to become shareholders," he added.

"Monzo's raise, which has been powered by Crowdcube, will undoubtedly spark a new era for crowdfunding as bigger brands with large communities want to emulate Monzo and benefit from the backing of their customers."

The latest fundraise reportedly means that Monzo is now a unicorn - a tech company with a valuation of $1 billion or more.