Actually there is no way with build-in components to do this job. If I had to solve this I would indeed use a database table to implement the SCD logic and create the content of the output Excel file from scratch new with the content of the database table.
The problem without a database is to implement the find and update method for a data set in excel. For sure this is possible but needs individual java programming. At the moment I cannot see enough other use cases (other then your request) for it to start a project solving this task.
I want to insert this data, (based on id in a database table related to the name fields in exel sheet) into another database table. I want to know if we can write a query on a database table to find the ids related to the names in exel sheet and then inserting the resulting records from exel sheet to database table