" Yes I want to use the RAW file as a source and then update records in the database (tried using TSQL update but not sure about how to get the RAW data into it) It needs to be fast!! "

--Here you have to be more specific in terms of what kind of updates u want to perform in database. Based on that there are several transformations available in SSIS for ex., derived column, conversion etc. and all of them can read data from ur RAW file source.

Also, reading data from ur RAW file source is relatively much faster than flat, oledb sources because it does not require parsing and translation of data.